Aviva 2006 Annual Report Download - page 35

Overview Business review Governance Financial statements Other information
Aviva plc
Annual Report and Accounts 2006 31
RAC has continued to deliver excellent customer service and
has been rated number one for motorists in the 2006 JD Power
Roadside Assistance survey. In addition, RAC has agreed a three-
year deal to provide breakdown assistance to all VW Group
brands (including Audi, Lamborghini, Bentley, Seat and Skoda),
commencing in the first quarter of 2007. This follows a new six-
year deal with Lex Vehicle Leasing to provide roadside assistance
and glass replacement, and a two-year UK roadside contract
with AssetCo that were signed in the first half of the year.
RAC also successfully renewed its contracts with Porsche and
Volvo and, since the end of the year, its contract with Motability.
We have won Insurance Times General Insurer of the year
for the fourth successive year and are a partner of choice to
the UK’s top brands. During 2006, we signed deals with the
Post Office (to provide motor, homeowner and commercial van
products), and with the broker Towergate (to provide creditor
insurance). We also successfully renewed our contracts with
Abbey and Saga to provide homeowner insurance, and our
contract with Lloyds TSB to provide creditor insurance.
Our commitment to corporate social responsibility is reflected
in the business decisions we take and the recognition we receive.
In October, we announced the full launch of our “Pay As You
Drive”TM product. This raises awareness of road safety (especially
the increased dangers of driving at night to young drivers) and
gives drivers greater control over their motor insurance, by enabling
an informed choice about when, where and how often they use
their car.RAC was named Breakdown/Recovery Company of the
Year in the Greenfleet Awards, for its environmentally friendly
roadside patrols.
NU Healthcare is a leading UK health insurer providing private
medical insurance (PMI) and income protection to over 800,000
customers. The PMI health result was break-even (2005: £4 million
profit) reflecting increased strategic focus and investment in the
healthcare business.
iNorwich Union
Healthcare offers
dedicated support
for cancer patients
During the year, we have improved further Norwich
Union Healthcare’s dedicated and comprehensive
cancer claims service.
Wehave added to the existing group of nurses
and advisers to create a team with a vast wealth of
knowledge and experience in managing cancer cases.
As a result, this service is now available to all of
Norwich Union’s customers who have been diagnosed
with cancer.Every customer handled by the team has
anominated claims handler allowing us to develop
asupportive and customer focused relationship.
The team works in partnership with Macmillan Cancer
Support and advises customers of the wide range
of services the charity provides to people affected
by cancer.In addition, Norwich Union has donated
£35,000 to Macmillan Cancer Support to help fund
aMacmillan nurse and consultant for teenagers
and young adults at Southampton General Hospital.
Wepreviously helped to fund the building of a
Macmillan support and information centre at the
hospital, which continues to make a real difference
to the lives of people affected by cancer.
U
For more information on Norwich Union health services
please go to www.norwichunion.com/health
UK – Fund management
Operating profit Operating profit
IFRS basis EEV basis
2006 2005 2006 2005
£m £m £m £m
The Royal Bank of Scotland (7) (1) (7) (1)
Norwich Union
investment funds 1919
Total (6) 8(6) 8
Our primary fund management business in the UK is Morley Fund
Management, which falls under the responsibility of Philip Scott.
Therefore, Morley’s performance is reported within Philip Scott’s
business unit review, International and Morley.
In addition to sales under the Morley brand, we sell ISAs, unit trusts,
open-ended investment companies (Oeics) and structured products
under the Norwich Union and The Royal Bank of Scotland brands.
Our operating losses from these businesses amounted to
£6 million (2005: £8 million profit) where increased sales through
the company’s collectives investment business with RBSG resulted
in a higher new business strain.