Aviva 2007 Annual Report Download - page 26
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Aviva plc
Annual Report and
Accounts 2007
Business review continued:
UK – Long-term savings
22
Business
review
Long-term savings
IFRS IFRS EEV New New
profit operating operating business business
before tax profit profit PVNBP* contribution** margin**
£m £m £m £m £m %
2007 616 723 864 11,655 360 3.1
2006 915 629 744 11,146 327 2.9
* Excludes investment sales. Investment sales totalled £2,751 million
(2006: £2,455 million) giving overall new business sales of £14,406 million
(2006: £13,601 million).
** Stated before the effect of required capital.
Dear Shareholder,
Aviva UK Life has reported record sales
and profits for the second year, delivering
on “one Aviva, twice the value”. In doing
so we are beginning to realise the full
potential of our scale position.
In 2007 we’ve focused on improving
our customers’ experience, and at the same
time created value from our existing business
through reducing costs. We’ve made great
progress towards reducing the complexity
of our life and pensions operations through
an innovative agreement with Swiss Re,
which is helping us become a much more
efficient organisation.
We’ve grown sales and improved brand
value through joint advertising with Norwich
Union Insurance. We continued to grow
our presence in the corporate market,
putting Norwich Union products directly
into customers’ workplaces; maintained
a strong presence in the financial adviser
market; and launched a distribution deal
with the Post Office, offering innovative
products such as our simplified life insurance
product. In 2008, we’ve continued to
innovate and recently announced the
launch of a SIPP-lite product to enhance
our pensions product range.
The UK market is challenging as the
credit crunch and stockmarket volatility
continue to impact the economy.
Nevertheless, I am confident that our
scale, brand, strong distribution footprint
and broad product offering puts us firmly
on track to realise our long term goal of
clear UK market leadership.
Mark Hodges
UK Life, Chief executive
0
2,000
4,000
10,000
12,000
8,000
6,000
2004 2005 2006 2007
14,000
(£m)
Total long-term saving sales
Investment sales
Life & Pension sales
IFRS operating profit
EEV operating profit 0
200
100
400
300
900
600
500
700
800
2004 2005 2006 2007
(£m)
Operating profit
1
2
56
4
3
%
Split of life and pension sales
1 Individual pensions 28
2 Group pensions 9
3 Annuities 17
4 Bonds 36
5 Protection 8
6 Equity release 2
Total 100