Announcement

Aviva Newsroom - 10 March 2016


Aviva Asia Full Year 2015 Financial Results

Significant progress and VNB growth
 

  • 22%1,2 increase in VNB - Aviva’s key growth metric - to £151 million (US$230 million)
  • Aviva Singapore and Aviva-COFCO (China) continued to perform well despite challenging market headwinds
  • Launch of major digital initiatives across the region

Singapore/Hong Kong: Aviva Asia today announces financial results for the 12 months ended 31 December 2015. Value of new business (VNB) increased 22%1,2 to £151 million (US$230 million; FY14: £122 million2) as a result of strong performances in Singapore and China. Singapore’s VNB increased by 19%1, following higher sales of protection products as we deepened our relationships with key Independent Financial Advisors. VNB in China improved by 31%1, driven by a continued shift towards higher margin products distributed through our growing face to face, affinity and digital channels. The inclusion of Friends Provident International (“FPI”) benefitted FY15 overall VNB by £5 million (US$8 million).

Overall operating profit from life and general insurance and health business was £238 million (US$364 million; FY14: £85 million). The life insurance business recorded an operating profit of £244 million (US$373 million; FY14: £87 million), with FPI contributing £151 million3 (US$231 million). Excluding FPI, life operating profit in Asia grew to £93 million (US$:142 million; FY14: £87 million), mainly reflecting a higher new business contribution in Singapore and higher profits from China.


A successful multi-distribution strategy

Aviva continues to expand its customer reach through its multi-distribution strategy across financial advisory, bancassurance, agency, affinity and digital, tailored to the needs of each individual market. This has led to significant improvements in market share in some key segments. For example, in Singapore, topline and bottomline results were both strong, driven by growth in the savings as well as the protection space. The group insurance business also continued on an upward trend, where Aviva is currently one of the biggest providers, insuring more than 850,000 employees in Singapore. In China, Aviva-COFCO’s agency force grew by 43% and digital developments leveraging social media WeChat and COFCO affinity relationships saw encouraging results. In Vietnam, our recently created agency sales force grew to more than 1,000 agents, while our bancassurance partnership with Vietinbank confirmed its market leadership. Finally, in Indonesia, aside from our distribution agreement with Bank Permata, we reached new partnerships with finance companies of our joint venture partner, Astra International Tbk.


Focus on Digital First

In December 2015 Aviva extended its global digital capability with the opening of its Digital Garage in Singapore, where its technical and creative teams now collaborate to develop new products and solutions tailored to the Asia markets.

A number of digital services have come to life in the period, including the claims processes for group employment benefits in Singapore and the Digital Health and Wellness Platform successfully launched in China in June which were well received by our customers.

Chris Wei, Executive Chairman of Aviva Asia & FPI and Global Chairman of Aviva Digital, said:

“2015 was another year of strong growth for Aviva Asia. China and Singapore were the main drivers of VNB growth, thanks to strong contributions from our protection business in both markets, and we saw our young Indonesian and Vietnam businesses make encouraging and solid progress.

“While we have continued to grow our presence and revenue in our key markets, we have also made a significant leap in the roll out of our Digital First strategy. Digital is at the core of our business and, in December, we opened Aviva’s Asia Digital Garage, a world-class digital facility. With our new digital team working around the clock, we are consolidating our global advance in digital insurance. I look forward to delivering new digital solutions to our customers and distributors in 2016 that will further enhance their experiences and improve efficiencies.”

 

1 Constant Currency Basis
2 Excluding South Korea
3 FPI contributed £151 million to the life operating result (£15 million operating profit net of amortisation of acquired value of in-force business) since its acquisition in April 2015.

 

– end –

 

Enquiries:
Media
Finsbury +852 3166 9888
Marylene Guernier marylene.guernier@finsbury.com
Joanna Yau joanna.yau@finsbury.com


About Aviva

  • Aviva provides life insurance, general insurance, health insurance and asset management to 33 million customers, across 16 markets worldwide
  • In the UK we are the leading insurer serving one in every four households and have strong businesses in selected markets in Europe, Asia and Canada. Our shares are listed on the London Stock Exchange and we are a member of the FTSE100 index.
  • Aviva’s asset management business, Aviva Investors, provides asset management services to both Aviva and external clients, and currently manages over £289 billion in assets.
  • Aviva helps people save for the future and manage the risks of everyday life; we paid out £30.7 billion in benefits and claims in 2015.
  • By serving our customers well, we are building a business which is strong and sustainable, which our people are proud to work for, and which makes a positive contribution to society.
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About Aviva Asia

  • Aviva operates in seven markets in Asia (Singapore, China, Indonesia, Hong Kong, Vietnam, Taiwan and India).
  • Aviva is a leading life insurer in Singapore and one of the biggest providers of employee benefits and healthcare insurance.
  • Aviva-COFCO ranks among the top seven foreign life insurers in China, operating in twelve provinces with over 50 branches.
  • In Indonesia, Astra Aviva Life is an equal joint venture between Aviva and Astra International, one of Indonesia’s largest diversified conglomerates, to sell and distribute insurance products.
  • Aviva has had a presence in Hong Kong for more than 150 years.
  • In Vietnam, Aviva operates as VietinAviva through Vietinbank Aviva Life Insurance Company Ltd, a joint venture with Vietnam Joint Stock Commercial Bank for Industry and Trade.
  • Aviva operates First-Aviva in partnership with First Financial Holdings in Taiwan, with a wide distribution network of 190 branches across the country.
  • Aviva operates in partnership with the Dabur Group in India, with a wide distribution network of 121 branches spreading across nearly 1,000 towns and cities.
  • Following Aviva’s acquisition of Friends Life Group in April 2015, Friends Provident International is now part of the Aviva Group. Friends Provident International provides life assurance and investment products in Singapore, Hong Kong and the United Arab Emirates.