Aviva upbeat on first-quarter sales figures
In a trading update, Aviva has revealed that worldwide sales for the first quarter of 2009 were up 5%, to £10.3 billion, with life and pension sales showing an 11% increase, to £9.5 billion.
The group added that it has significantly enhanced its capital position, which stood at £2.5 billion at the end of March, after allowing for the payment of the 2008 final dividend.
Increased hedging for equity market movements now mean that a 40% fall would reduce Aviva’s cash surplus by just £0.2 billion; at the same time, a 40% increase would result in an £800 million gain.
The group’s chief executive, Andrew Moss, comments: “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.”
The group described its first quarter performance in the general insurance markets as “satisfactory” adding “people still want to protect their homes, cars and businesses”.
Finally, Aviva confirmed that it remains on track to deliver a combined operating ratio in line with its group target of 98%.
Category: Aviva News, Financials, Insurance News
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