Insurer Aviva reported weaker 2009 life sales, held back by tough economic conditions in the UK, and said its general insurance arm had been hit by hefty weather claims in the final quarter.
- Life and pensions sales of £8 billion in the fourth quarter, up 21% on the third quarter of 2009
- Strong regional performance with life and pension sales up 17% in the UK, 39% in Aviva Europe* and 45% in the US compared with the third quarter of 2009stre
- Sales volumes managed to ensure capital efficiency and profitability
- Worldwide total sales for the year of £36 billion (2008: £40 billion)
Capital position strengthened
- IGD solvency surplus estimated at £4.5 billion (2008: £2.0 billion)
Strong strategic progress
- Successful IPO of Delta Lloyd
- £0.5 billion being paid to policyholders for reattribution of UK inherited estate
- Completed sale of Australian life business
* which excludes Delta Lloyd
Andrew Moss, Aviva’s group chief executive, commented: “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. European bancassurance was particularly strong.
“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.
“We also achieved a number of important milestones in the final three months of the year, in particular the IPO of our Dutch subsidiary, Delta Lloyd, building further momentum in the delivery of our ‘One Aviva, twice the value’ strategy.
“We start 2010 in a strong position. Our focus remains on growing our business profitably and improving our operational efficiency so that we can fully benefit as our major markets return to economic growth.”
