Spotlight: Update on Aviva France

Transcription

1 Spotlight: Update on Aviva France Bruno Rostain Chief Executive, Aviva France

2 Aviva France: position & strategy in the Life market Chosen market is personal savings and wealth transmission Focus on developing unit-linked business, with market share of 8% (FY 2005), compared to 5% share of total market Unit-linked share of Individual savings 50% 40% 44% Aviva Unit linked % 30% 29% Market 20% 10% Q06 Multi-distribution - owning or exerting influence over a strong set of networks Strategic priority for 2006 is to maximise the opportunity through the Fourgous amendment to reorient business in force towards unit-linked funds, along with a systematic approach to better understand the customer s risk appetite

3 Sustained performance in fund management is a powerful tool for Life sales and communications Aviva Gestion d Actifs Fund Management performance breakdown by quartile to 31 March 2006 Number of funds Top quartile Quartiles 1 & 2 Quartiles 1, 2 & 3 Quartiles 1, 2, 3 & 4 Over 3 years 37 32% 70% 100% Over 5 years 36 61% 94% 97% 100%

4 Life market & strategy: Aviva France distribution AFER ioneer and market reference savings association uccessful for over 30 years epresents funds of over 35bn and over customers (at end 2005) trong customer loyalty reflected in low lapse rate.7% in 2005, excluding death payouts) built on w charges and strong financial performance thers (brokers...) 42% AFER distribution (Aviva owned in blue) Aviva Vie networks 24% Epargne Actuelle 34% argne Actuelle, an Aviva subsidiary, is a ptive distribution structure, which uses direct rketing and face-to-face to sell AFER products. team of 61 financial advisers operating from 38 encies generated an average turnover per viser of 13m in Particularly strong growth in unitlinked business: UL% of new business: up from 6% in 2003 to 22% in 2005, and 31% in Q Breakdown of PVNBP: ,155m AFER 2,460m 47% 3% ANTARIUS 1,063m 21% 29% Aviva Direct 173m Aviva Direct The leading direct provider of protection products in France Sells its products directly to the over 50s Represents 3% of total PVNBP and 7% of the total New Business Contribution A continuing success OTHER NETWORKS 1,459m ANTARIUS (bancassurance partnership with Crédit du Nord) Details of this partnership later 26% Other Distribution Networks Breakdown of other networks (Aviva owned in blue) 7% 2% 23% DSF Aviva DSF UFF (76% Aviva owned) Aviva Tied Agents (GI distribution netwo Médéric (partnership) Brokers Captive distribution structures 10% 32 Specific strength is unit-linked sales (2005: 70% of business mix)

5 Life market & strategy: Close-up of ANTARIUS Overview of partnership Crédit du Nord, part of Société Générale Group since 1997 and composed of 7 regional banks, is serving 1.47m customers through 684 branches Collaboration in Life follows successful distribution arrangements between the two partners in General insurance since 2002, recently extended to Legal Protection Deal structure, terms & conditions Scope: Exclusive right to distribute life products through CdN s branch network Corporate entity: Antarius, equally owned by the two partners, Aviva and Crédit du Nord Duration: 12 years from October 2004 Features: Administration of the portfolio and fund management of euro funds with Aviva France; unit-linked fund management with Credit du Nord Strong governance of partnership driving product design and marketing campaigns A good start, to be continued 2005 sales of 1.1bn, PVNBP basis, with growth comfortably higher than the bancassurance market average (20% vs. 14%) Gross New Business Margin for FY 2005 was 4.1% Aviva has met its objective of handling Antarius volumes ( Life policies in force at the time of launch) at agreed standards of service quality Technical reserves stood at 4.9bn at end 2005, an increase of 23% on end 2004

6 Greater efficiency has enabled us to maintain tight control over expenses while growing the business year trend in expenses vs GI premiums, Life sales & Life reserves 100 Operating expenses * 90 (a) Base: 2001 = 100 Life reserves Life sales GI premiums * Operating expenses, excluding sales force costs and financing costs operating expenses were 430m in 2005 (a) Fall in Life sales in 2003 due mainly to the sale of the Group Protection portfolio: negative impact of 7pp (b) Antarius effect represents an impact of 5pp in 2004 (3 months activity only) and 28pp in 2005 (b) Some examples of recent / current efficiency projects: Segmentation as a key driver of both sales efficiency and customer service Use of electronic rather than paperbased exchanges between Head Office and the networks Re-use and adaptation of systems and sales tools among the various networks Duplication of efficient Crédit du Nord processes to other networks Use of Service Level Agreements to ensure delivery of required quality of service Rationalisation of IT platforms and systems Relocation of Paris-based offices to a single site in 2005