Aviva reports ‘resilient’ sales
27 April 2009
Written by Sophie Baker
Aviva plc has reported “resilient” new business
sales in its three month statement to end March 2009, with life and pensions
sales worldwide increasing by 11 per cent to £9,569million over
this period.
The UK reported new business in this period of £2,505million, and
Europe saw new business of £4,735million.
The company also said its capital surplus at the end of March was £2.5bn,
a significant increase.
“It’s encouraging to see that people are continuing to save
with companies they trust, like Aviva,” said Andrew Moss, Aviva’s
chief executive. “Sales are resilient and we’ve taken action
to improve margins in key markets. It is particularly pleasing to see
bancassurance sales rebound as banks refocus on insurance as an important
contributor to their earnings.
“A disciplined approach to writing business and a focus on capital
management will continue to serve us well. We have a diversified business
which spans 28 countries and sells through a range of distribution channels.
We continue to navigate a steady course through challenging times,”
he said.
Meanwhile, Friends Provident has revealed that its total life and pensions
sales for the first quarter of 2009 has dropped by 40 per cent, which
the company says is a reflection of their new strategy and tough economic
environment.
The group said volatile investment markets had constrained new life and
pensions business in the first quarter, and over 2008 Friends Provident
withdrew from less financially attractive product lines.
Trevor Matthews, chief executive officer of Friends Provident plc, said:
“In the current economic environment, trading continues to be tough.
I am delighted to announce that in line with our strategy, we have significantly
broadened our distribution capabilities with an agreement in principle
to provide protection products with Tesco Personal Finance, a very exciting
development. We are very much back in business in group pensions, winning
20 schemes in the quarter, and our capabilities have been recognised by
a number of awards.”
