Aviva 2006 Annual Report Download - page 27

Overview Business review Governance Financial statements Other information
Aviva plc
Annual Report and Accounts 2006 23
Total sales
£19,541m
(2005: £16,472m)
2004 2005 2006
EEV operating profit
£1,813m
(2005: £1,571m)
EEV operating profit
£1,634m
(2005: £1,558m)
EEV operating profit
£362m
(2005: £319m)
Total sales
£17,018m
(2005: £15,581m)
Total sales
£4,905m
(2005: £3,841m)
£m
20,000
15,000
10,000
5,000
0
2004 2005 2006
£m
18,000
13,500
9,000
4,500
0
2004 2005 2006
£m
5,000
4,000
3,000
2,000
1,000
0
2004 2005 2006
£m £m £m
1,800
1,350
900
450
0
2004 2005 2006
1,800
1,350
900
450
0
2004 2005 2006
360
270
180
90
0
UK Europe International
and Morley
Developments in 2006
We completed the integration of RAC,
meeting our 2006 cost saving commitments
Weannounced annualised cost savings of
£250 million across our UK life and general
insurance businesses by the end of 2007
We successfully implemented our pension
simplification strategy, increasing long-term
sales by 31% while maintaining margins
Focus for 2007
Rationalising the cost base and legacy
systems of the UK businesses
Ongoing improvement in customer
service standards
Active management of our customer
retention
Continued focus on profitable underwriting
in our general insurance business
Identifying and exploiting new
market opportunities
Extracting value from the back book of our
life business
p32-41
Read moreabout our performance and futuredirection
on pages 32 to 41 of this report
p42-49
Read moreabout our performance and futuredirection
on pages 42 to 49 of this report
p24-31
Read moreabout our performance and futuredirection
on pages 24 to 31 of this report
Developments in 2006
We commenced a major bancassurance
partnership in Ireland with Allied Irish Banks
Our sales through bancassurance
partnerships grew strongly, up 24%
We gained increased access to additional
UniCredit branches in Italy, generating a
significant increase in sales volumes
We balanced profitability against sales
volumes in a challenging Dutch market
We focused on fund transfers in France that
benefit ongoing profitability
Focus for 2007
Increasing the penetration of our
bancassurance customer base
Increasing activity in central and eastern
Europe, which is one of the fastest
economic growth areas in the world
Growing our online general insurance
business in Ireland
Obtaining further access to distribution in
mature markets
Developments in 2006
We completed the purchase of AmerUs
in the United States
Wecommenced a major new
bancassurance partnership in India with
Centurion Bank of Punjab
We increased our presence in China and
are now licensed in six provinces, with a
total of 15 city branches.
We purchased Eagle insurance in
Sri Lanka and commenced two
bancassurance partnerships
Wecommenced trading in Russia, having
received our licence in March 2006
Focus for 2007
Completing a quick and efficient integration
of AmerUs
Continued expansion in India and China of
our bancassurance and direct sales channels
Developing further our relationship with
Development Bank of Singapore(DBS) in
Singaporeand Hong Kong
Adding corporate partnerships in our
Canadian general insurance business