Aviva Newsroom - 4 August 2016
Singapore / Hong Kong: Aviva Asia today announces financial results for the six months ended 30 June 2016, and has demonstrated continued strategic progress in core businesses in Southeast Asia and Greater China.
Operating profit from life and general insurance and health businesses of £112 million (US$160 million) was up significantly by 45%1 from £75 million (US$115 million) in the same period last year, mainly as a result of a full six month contribution from Friends Provident International (“FPI”), which became part of the Aviva group following the acquisition of Friends Life in April 2015.
Value of New Business (“VNB”) was £61 million (US$87 million) versus £76 million (US$116 million) in the same period last year. In Singapore, a significant increase in sales of protection products through the independent financial advisers network, partly offset the discontinuation of the DBS bancassurance agreement. In China, VNB was stable at £22million (US$31 million) due to growth in agency distribution of protection products offsetting the adverse impact of lower interest rates.
On 22 June 2016, Aviva Singapore was announced as the appointed provider of group insurance to the Singapore Ministry of Defence (“MINDEF”) and Ministry of Home Affairs (“MHA”). Aviva Singapore has been entrusted with providing group insurance coverage to servicemen and employees of MINDEF since 1983. Under the new agreement, Aviva now provides group insurance to MHA for the first time, which together with MINDEF, is the largest group scheme in Singapore.
In July, after the period end, Aviva Singapore announced the launch of Aviva Financial Advisers, a financial advisory (“FA”) firm with approximately 280 financial advisers who are licensed to provide a full range of life, health, general insurance and investment products. The establishment of Aviva Financial Advisers, responding to growing customer demand for choice in insurance and personalised financial advice, provides a catalyst to further grow the FA industry in Singapore as a whole. Underpinning this, Aviva Singapore continues to invest in digital infrastructure that simplifies processes and improves the efficiency for all FA partners to support its growth.
“The momentum of our transformation in Asia continues apace, as we pursue our strategy of disruption, and put customers at the centre of everything we do. Aviva Financial Advisers in Singapore is an excellent example of this, providing customers with more choice and access to an extensive range of products from Aviva and other trusted providers as well. We believe financial advisory is the future of the insurance industry in Singapore, as customers increasingly demand choice that tied agents cannot offer.
“Another example is the launch of the Asia Digital Garage in Singapore, a world-class digital facility, which marked an important milestone in the roll-out of our Digital First strategy in Asia. With it, we are set to deliver ever more digital insurance and investment solutions to our customers and distributors in Asia, including the revamped Navigator platform which will be launched soon.
“Our growth in China continues to be driven by the strength of our owned channels, agency and direct marketing. We have also made significant progress in the roll-out of digital offerings: Aviva-COFCO’s Health and Wellness platform has over 400,000 users and seven additional partners joined the platform this year. In addition, our new digital agency platform has been launched to enhance recruitment efficiency.
"In Indonesia, through our partnership with Astra International, Astra Aviva Life is on the right path with bancassurance as the primary growth driver. Within Astra International, we are also generating growth from other new distribution channels specifically through Astra’s finance companies.”