English
Aug
11
Aviva Profits Up as Aviva and RBS Sign New Life Insurance Distribution Deal
Posted on Aug 11, 2010 by Sergio Ulloa (G+)
International insurance company, Aviva, has recorded a 21 percent increase in operating profits in the first half of 2010. Aviva is also in the midst of discussing significant structural changes to their profit sharing joint-venture with Royal Bank of Scotland (RBS), which comes shortly after their deal to be the exclusive provider of life protection insurance products with Santander in the UK. Aviva recorded IFRS operating profits of GBP 1.27 billion (USD 2 billion) for the first half of the fiscal year, showing a 21 percent increase over the same time last year. Aviva also generated net operating capital of GBP 900 million (USD 1.42 billion), which brings the company a long ways towards its revised target of GBP 1.5 billion (USD 2.37 billion) for the year. Aviva is also in discussions over the future of their joint-venture with RBS, which comes close on the heels of Aviva's signed deal to be the sole provider of protection and life insurance products to Santander in the UK. Aviva's joint-venture with RBS in the UK has been running for about 10 years and was previously set up so that profits from the sale and distribution of the life insurance products was shared equally between the two entities. The preliminary terms would see Aviva engineer life protection insurance products, which RBS would then distribute, keeping the profit. However, negotiations between the two are expected to continue through the second half of the year, with the joint-venture being wound down by the end of 2010. Earlier in August, Aviva signed a five year distribution deal with Santander over life insurance products in the UK, expanding upon the preexisting relationship between Aviva and Santander in the general insurance sector. It will see Santander offering Aviva's life insurance products exclusively through its bancassurance channels which include 1,300 branches in the UK, as well as telephone and internet banking. The deal will come into effect from June 2011. The Chief Executive of Aviva's UK business, Mark Hodges said "As Britain's leading insurer, our strength lies in the breadth and quality of our product portfolio across both general and life insurance and I'm delighted that Santander's customers will benefit from this. Our new distribution agreement will build on our solid existing general insurance relationship with Santander, creating a platform for significant growth across our UK business." Insurance Companies Mentioned: Aviva
Europe's fourth largest insurance company, with more than 300 years of experience in the global insurance industry, Aviva is committed to the safety and satisfaction of its customers. They sell a broad range of insurance products including motor and property insurance, protection and health insurance, business insurance, life insurance and pensions.