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Daily Insurance Industry News
Tuesday 21st of May 2019
February 4, 2009

Aviva reports 11% rise in life and pension sales

by Gill Montia

Story link: Aviva reports 11% rise in life and pension sales

Aviva reports 11% rise in life and pension sales

Aviva has reported an 11% increase in life and pension sales in 2008, to £36 billion, with growth driven by UK and North American markets.

Life and pension sales in the UK hit £11.9 billion last year, while for Europe this category of sales rose 8%, to £17 billion.

In a trading update, Aviva also reassured investors about its capital position, stating that its capital cushion had increased by £100 million, to £2 billion, in the three months to the end of December.

Shareholders can therefore expect a dividend in line with the group’s policy.

However, an impressive performance has been somewhat overshadowed by the news that policyholder in Norwich Union’s with-profits fund may not receive windfall payments this year.

In July of last year, Aviva announced that it was prepared to pay an average £1,000 per policy to around 700,000 NU customers who had invested in GCNU Life or CULAC with-profits funds before November 21st 2006.

The company has today reported that market volatility has reduced the value of the fund significantly since the offer was agreed.

It would seem that plans for the windfall to be paid early this year are being abandoned and policyholders should expect a further update in the next few months.

 

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