Announcement

Aviva Newsroom - 4 August 2016


Aviva Asia Half Year 2016 Financial Results
 

  • Operating profit of £112 million (US$160 million)
  • VNB of £61 million (US$87 million)
  • New developments in Singapore:
    • Selected as exclusive provider of group term insurance for MINDEF and MHA
    • Launch of Aviva Financial Advisers with approximately 280 advisers

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.


The largest group scheme in Singapore

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.


Launch of Aviva Financial Advisers

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.


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

“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.”

 

1 Constant Currency Basis

 

– end –

 

Media enquiries:
Finsbury
Priscilla Wong (Hong Kong) Priscilla.Wong@Finsbury.com +852 3166 9828
I Ling Ong (Singapore) ILing.Ong@Finsbury.com +65 6597 7381


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.
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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 ten foreign life insurers in China, operating in thirteen 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.