Daily Insurance Industry News
Daily Insurance Industry News
Wednesday 20th of March 2019
May 11, 2010

Aviva reports strong first-quarter sales

by Gill Montia

Story link: Aviva reports strong first-quarter sales

Aviva reports strong first-quarter sales

Aviva has delivered its second consecutive quarter of growth, with long-term savings sales showing a 16% rise in the first three months of 2010 (to £10 billion) compared with the previous quarter.

Europe and the UK accounted for 85% of long-term savings new business, with Asia Pacific and North America also reporting strong growth.

First quarter investment sales increased to over £1 billion, and general insurance and health premiums rose to £2.5 billion, showing a 16% improvement on the previous quarter.

Aviva says it programme to create a single operating model across Europe is well under way, following a successful pilot of its pan-European product development centre in Ireland and cross-selling initiatives in a number of continental markets.

The group describes its capital position as “strong”, with an estimated IGD solvency surplus of £4.4 billion as at 31 March 2010.

Finally, the insurer has agreed a long-term funding plan for its main UK pension scheme, which should eliminate the deficit over time.

The Aviva and RAC final salary pension arrangements currently have a combined deficit of around £3 billion, compared with an estimated £1 billion deficit in 2006.

In April, the group set in motion plans to switch 7,600 staff from final salary benefits to money purchase arrangements, from 1st April 2011.


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