Avivia life and pension sales increase 21%

by Gill Montia

Story link: Avivia life and pension sales increase 21%

Aviva, the global insurance group that owns Norwich Union, recorded a 21% increase in worldwide life and pension sales in the nine months to the end of September 2007.

Sales in the UK rose 5%, to £10.9 billion during the period.

Strong growth was recorded in both Aviva’s Asia Pacific and Northern American businesses and the total sales figure of £22.9 billion was in excess of the group’s consensus forecast of £22.7 billion.

The group also reported that it has made significant progress in its strategic priorities, having simplified its legacy system and improved customer retention.

Andrew Moss, Aviva’s group chief executive, commented: “Aviva’s new business sales in the first nine months of 2007 are highly encouraging and have been achieved at consistently strong margins, in line with our value creation objectives”.

Mr Moss believes that the group is well positioned to deliver its new medium-term growth targets, “not only in the fast growing economies of Asia and Central and Eastern Europe, but also in the more mature European markets, including the UK, and in North America”.

In early October, Aviva announced plans to reduce costs by £100 million by the end of 2009.

It expects to achieve this in addition to the £125 million in savings announced in 2006.