Aviva reports strong sales growth in Europe, marginal drop in the U.K |
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Tue, 07 Feb 2006 18:25
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LONDON: Aviva Plc., Britain's largest insurer, posted a 7 per cent increase in its 2005 sales with international life and pensions business registering strong growth in spite of its domestic market getting tougher.
The insurer said its new business sales rose to 24.6 billion pounds during the year ended December 2005 from 22.3 billion pounds the year before, while total life and pensions new business sales rose to 22.2 billion pounds, ahead of market expectations of 22.1 billion pounds.
It said it had a record year for investment sales, up 45 per cent to 2.4 billion pounds, particularly in the U.K. A 35 per cent growth in the country helped it to increase overall sales by 2 per cent as life and pensions sales were largely affected by competition. Individual pension sales in the U.K. were lower after it withdrew from less profitable businesses in the first half of the fiscal. Sales of these products in the country had dipped by 1 per cent.
Its Norwich Union also had a solid performance with total sales going up 2 per cent to 10.2 billion pounds.
Life and pensions sales recorded a 14 per cent growth in the company's international arm, with sales in France up 26 per cent, Italy up 27 per cent and Ireland up 18 per cent. However, sales in Spain, one of its traditional markets, slid 5 per cent.
Chief executive Richard Harvey said in a statement that the company's long-term savings business is flourishing, thanks to its strong international portfolio. "We are confident of further growth for Aviva in 2006," he added.
Aviva plans to enter the bulk annuities market in Britain in the current fiscal as it sees strong demand and attractive margins.
Aviva shares rose 1.6 per cent to 739 pence.
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