Aviva 2013 Annual Report Download - page 272

Aviva plc
Annual report and accounts 2013
270
Information on the Company continued
Discontinued operations
United States
Business overview
In October 2013, the Group completed the sale of its United
States life operations (US Life), consisting of the United States
life and annuities business (Aviva USA) and the related asset
management operations of Aviva Investors North America, to
Athene Holding Ltd. The results of US Life for all periods are
presented as a discontinued operation. See ‘IFRS Financial
statements – note 4 – Subsidiaries’.
Market
Aviva USA was a provider of fixed indexed life insurance and
fixed indexed annuities in the USA. According to Wink’s Sales
& Market Report, as of 30 September 2013, Aviva USA was
ranked ninth in the market for the sale of fixed indexed life
products with a 4% market share, and fifth for the sale of fixed
indexed annuities with a 6% market share.
Products
Aviva USA offered both protection and savings products, with
traditional fixed as well as indexed accumulation options that
pay interest based on the movement of a market index.
Aviva USA also offered a range of optional extras or ’riders’
added to policies to meet customised individual needs.
In the savings market, Aviva USA’s fixed annuity portfolio
offered tax-advantaged savings opportunities and protection
against the risk of outliving one’s assets. Some of these
products included a guaranteed lifetime withdrawal benefit that
allows customers to make guaranteed minimum withdrawals
from their annuity for the entirety of their lives.
Distribution
Aviva USA used a multi-channel distribution strategy, which
included career marketing organisations, independent
marketing organisations, brokerage general agents and personal
producing agents. Its network covered all 50 states with agents
largely contracted through key distribution partners.
Delta Lloyd
Delta Lloyd is a financial services provider in the Netherlands
and Belgium.
The Group ceased to control Delta Lloyd on 6 May 2011
and its results for 2011 up to that date are presented as
discontinued operations.
For the period from 7 May 2011 to 5 July 2012, the Group
had an associate interest in Delta Lloyd. From 6 July 2012,
following a further selldown, the Groups stake was treated as a
financial investment. The Groups share of Delta Lloyd’s results
as an associate and its interest in Delta Lloyd as a financial
investment are both included in the comparative periods
presented in these financial statements in “other group
activities” within continuing operations.
In January 2013, the Group sold its remaining stake in
Delta Lloyd.