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Daily Insurance Industry News
Monday 15th of October 2018
November 6, 2009

Aviva sales slip but profitability remains on track

by Gill Montia

Story link: Aviva sales slip but profitability remains on track

Aviva sales slip but profitability remains on track

In a trading update covering the first nine months of the year, Aviva has reported an 11% drop in total worldwide sales (and life and pension sales) to £27 billion.

Total life and pension sales slipped to £24.06 billion, from £27.01 a year earlier and investment sales were down to £3.04 billion (£3.37 billion).

The insurer attributes the declines to lower consumer demand and some of its strategic actions.

However, the group margin is in line with full year 2008 figures at 2.1%, and Aviva says the outlook for 2009 total profitability remains good.

In addition the insurer’s balance sheet has been bolstered to show an IGD solvency surplus of £3.7 billion, compared to £3.2 billion at the same point in 2008.

Achievements of recent months include the successful partial initial public offering of Delta Lloyd on Euronext Amsterdam, completion of the sale of the group’s Australian life business, the reattribution of its UK with-profits surplus and a listing on the New York Stock Exchange, aimed at driving growth in US life and pensions markets.

Group chief executive, Andrew Moss, comments: “In recent months Aviva has completed a number of strategic initiatives which, together with improving financial markets, significantly increased our capital and balance sheet strength.”

He adds: “The outlook for the group’s total profitability in 2009 is good despite a reduction in sales driven by continuing customer caution and active management of sales volumes to optimise profitability.”

 

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