Aviva sets sights on 20% annual growth in Asia-Pacific
Lee Su Shyan
Mon, May 19, 2008
The Straits Times
BRITAIN-BASED insurer Aviva, which provides protection for about one in three employees in Singapore, has set itself an ambitious target - 20 per cent annual growth in the Asia-Pacific region until 2010.
Its strategy is underpinned by its confidence in the region, with China at the forefront.
Aviva chalked up 60 per cent growth in the Asia-Pacific for the 12 months ended Dec 31 last year, with the region contributing about 11 per cent to the group's total new business.
The world's fifth-largest insurer, Aviva uses a multi-channel distribution strategy for the products it sells in Singapore.
It has a tie-up with DBS Bank that dates back to 2001, when it bought the bank's Insurance Corporation of Singapore business. Aviva also distributes its products through other insurers and uses financial advisers.
Asia-Pacific chief executive officer (CEO) Simon Machell sees further growth in Singapore, driven by increasing demand for capital-guaranteed products and health insurance.
More than 300 years old, Aviva started out selling fire insurance in the English town of Norwich. Last year, it appointed a new group CEO - Mr Andrew Moss - as part of an ambitious bid to build Aviva into a global brand.
Mr Moss said the group had previously operated more as disparate units. Its new tagline - One Aviva, twice the value - sums up the company's now broader approach.
Mr Machell told The Straits Times: 'We are trying to behave like one company. Asia used to do its own thing. Now, we are better able to share good ideas across the countries. We can take ideas from mature businesses and develop them in other markets.'
One example is the Navigator unit trust wrap platform - a hub used to manage client portfolios - which was introduced in Australia and later brought to Singapore.
The platform has been highly successful, with more than $2 billion in funds under administration in Singapore. Aviva is exploring avenues through which to introduce the Navigator platform in markets such as Hong Kong and India.
For Singapore, 'we are actively exploring bringing in similar plans such as ones for disability income from Australia', added Mr Machell.
He is confident that Aviva will enjoy improved operational efficiencies in the Asia-Pacific through shared services.
The group recently ventured into Korea, Indonesia, Malaysia and the Middle East. In January, it also started a joint venture in Taiwan for the life and pensions businesses.
Mr Machell said: 'We would consider entering Thailand and Vietnam if the right opportunities arise.'
