Aviva 2007 Annual Report Download - page 38
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Annual Report and
Accounts 2007
Business review continued:
Europe
34
Business
review
Long-term savings
2007
IFRS IFRS EEV New New
profit operating operating business business
before tax profit profit PVNBP
†
contribution
‡
margin
‡
£m £m £m £m £m %
France 325 243 537 3,662 169 4.6
Ireland 45 73 77 1,730 30 1.7
Italy 79 78 137 2,924 82 2.8
Netherlands* 407 181 352 2,944 93 3.2
Poland** 117 110 206 844 35 4.1
Spain 106 119 239 2,392 189 7.9
Other Europe (27) (27) (5) 418 – –
Europe 1,052 777 1,543 14,914 598 4.0
2006
IFRS IFRS EEV New New
profit operating operating business business
before tax profit profit PVNBP
†
contribution
‡
margin
‡
£m £m £m £m £m %
France 259 224 402 3,552 153 4.3
Ireland 52 49 (40) 1,273 15 1.2
Italy 76 81 110 2,768 70 2.5
Netherlands* 453 102 329 2,346 56 2.4
Poland** 108 95 162 534 28 5.2
Spain 113 113 221 2,059 184 8.9
Other Europe (16) (16) (13) 308 (4) (1.3)
Europe 1,045 648 1,171 12,840 502 3.9
* Includes Belgium, Luxembourg and Germany.
** Includes Lithuania.
† Excludes investment sales. Investment sales totalled £1,572 million
(2006: £891 million) giving overall new business sales of £16,486 million
(2006: £13,731 million).
‡ Stated before the effect of required capital.
General insurance, health and related services
2007
IFRS IFRS Combined Net Under-
profit operating operating written writing
before tax profit ratio
≠
premium result
£m £m % £m £m
France 53 70 99 733 11
Ireland 151 162 80 474 101
Netherlands 105 169 85 1,717 75
Other Europe 16 41 94 309 10
Europe 325 442 89 3,233 197
2006
IFRS IFRS Combined Net
profit operating operating written Underwriting
before tax profit ratio
≠
premium result
£m £m % £m £m
France 77 63 99 735 6
Ireland 297 172 77 519 121
Netherlands 107 139 89 1,755 50
Other Europe 26 43 100 278 12
Europe 507 417 90 3,287 189
≠General insurance business only.
Fund management
Operating profit Operating profit
IFRS basis EEV basis
12 months 12 months 12 months 12 months
2007 2006 2007 2006
£m £m £m £m
France 33 33 10 10
Netherlands 23 37 17 33
Other Europe 4343
Europe 60 73 31 46
Aviva Europe is committed to delivering
the benefits of “one Aviva” by capitalising
on our scale to achieve further growth and
generate capital. With extensive resources
and knowledge in the region, we have
proved our ability to use regional experience
and capability to add value to our distributors
and partners through developing new
products and distribution initiatives throughout
Europe to meet customers’ needs.
Over the year our businesses in southern
Europe have grown strongly and further
increased market share. The distribution
landscape in Spain and Italy is dominated
by bancassurance and we have made
significant steps in both markets,
strengthening existing partnerships and
signing new agreements with leading
banks in both countries.
Across northern Europe, our joint
venture with Allied Irish Banks and the
enhancements to our broker channel have
led to an increase in market share in Ireland.
We increased sales in France and the
Netherlands despite difficult market conditions.
In France, we successfully worked with
the AFER association to modernise the
core savings product and sales responded
strongly. In the Netherlands we have grown
sales through our success in the group
pensions market. Our objective is to increase
market share in these countries through the
continued segmentation of our customer base,
the provision of superior and targeted service
and advice, cross-selling and the continued
enhancement of product offerings.
In central and eastern Europe, sales have
grown significantly in Poland reflecting the
excellent pension sales and the development
of our bancassurance partnerships and
popular new products. In Turkey, we have
transformed the business by merging our
life and pensions business with AK Emeklilik,
to create AvivaSA. Elsewhere across the
region, our businesses continue to grow
strongly and are well positioned to continue
to capture the exciting growth opportunities
in these emerging markets.