Aviva seeks “best person in the world” as savings sales dip
by Gill Montia
In a trading update, Aviva has announced that operating profit for the first quarter of 2012 is marginally down compared to the same period last year, but mostly due to the offloading of its Delta Lloyd and RAC businesses.
During the period, long-term savings sales fell 5% to £7.5 billion (Q1 2011: £7.8 billion) as a result of tough market conditions.
General insurance and health net written premiums were level with last year, at £2.2 billion.
However, profitability levels are in line with targets: in life insurance the new business internal rate of return was 13.3% (Q1 2011: 13.7%) and the group general insurance combined operating ratio stood at 96% (Q1 2011: 97%).
Aviva estimates its IGD solvency surplus at 31st March 2012 at £3.2 billion, ahead of the full year 2011 position.
The insurer’s executive deputy chairman, John McFarlane, comments: “Although the economic environment remains uncertain, we have delivered a solid operating performance during the first three months of 2012 and profitability in both our life and general insurance businesses is in line with targets.”
He adds: “We have begun the process of identifying a new CEO for the Group, internally and externally.
“We expect this will take the remainder of this year, as we need to appoint the best person in the world available to us.”