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Aviva reports 21% rise in life and pensions sales

Posted on February 6th, 2010

Aviva saw a 21% rise in worldwide life and pensions sales in the fourth quarter of 2009, to £8 billion, compared with the previous three month period.

The group said it had put in a strong regional performance, with life and pension sales up 17% in the UK, 39% in Aviva Europe and 45% in the US.

Sales were higher in all regions compared to the previous quarter, with a particularly strong performance in both bancassurance and retail channels in Europe.

Turning to full-year 2009 life and pension figures in the UK, “exceptional economic conditions … impacted consumer confidence and reduced activity across the UK market”.

As a result, UK life and pensions new business sales came in at £8,914 million in 2009, compared to £11,858 million a year earlier.

Furthermore, worldwide life and pension sales for the whole of last year stood at £36 billion, down from £40 billion in 2008.

In its general insurance business, Aviva said it continued to write business “for profit not for volume” and noted that it had seen exceptional weather claims of around £100 million in the final quarter of 2009, which will impact the group’s combined operating ratio for the full year.

According to the insurer: “This has been driven particularly by the storms in both Ireland, where exceptional claims were around £80 million, and in the UK.”

Commenting on the results, group chief executive, Andrew Moss, said: “In the fourth quarter we increased sales across all our regions and saw the first signs of an improved appetite to save among our customers.”

He added: “In 2009 as a whole we have successfully managed new business to ensure the right balance between volume, capital efficiency and profitability. This means we have deliberately foregone sales in some areas.”

 

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