View more on these topics

Aviva UK life new business profits up but sales plummet

Aviva’s UK life division saw new business profits surge 15 per cent in the first quarter despite sales dropping year-on-year.

The insurer’s first quarter interim management statement, published this morning, reveals the value of new business written in its UK life arm rose from £89m in Q1 last year to £103m in the first three months of 2015.

The firm says lower profits from new annuity business were “more than offset” by improved performance in pensions and equity release.

Sales measured on a present value of new business premiums basis were down 17 per cent year-on-year, however, from £2.93bn to £2.45bn. This was primarily driven by a 73 per cent slump in annuities sales, from £500m to just £136m. Protection sales also plummeted 10 per cent, from £297m to £268m, although equity release new business rose 76 per cent, from £117m to £206m.

Pensions sales were flat at £1.32bn.

Aviva group chief executive Mark Wilson says: “Aviva’s turnaround is on track and ahead of schedule. It’s been a busy quarter. We have completed the acquisition of Friends Life and at the same time delivered an improvement in our key metrics.

“Detailed plans to integrate Friends Life are well underway and whilst this is a challenging and complex project, we are confident of timely progress. We expect 2015 to be a year of continued delivery of our turnaround plan.”

Recommended

Thornton-Mike.LibDems.2013

Ex-mortgage broker loses seat in election

Former mortgage broker Mike Thornton has lost his seat after a drubbing in the general election. Thornton, who was fighting to retain his seat in the constituency of Eastleigh, was beaten heavily by Conservative candidate Mims Davies. He managed to secure 25.8 per cent of the votes, compared to Davies’ 42.3 per cent. He has […]

Older-Old-Couple-Pension-Pensioners-Elderly-700.jpg

Shawbrook launches second charges for older borrowers

Shawbrook Bank has launched a range of second charge products for older borrowers struggling to access finance. The fixed and variable second charge products start at 7.45 per cent for a buy-to-let second charge and 4.99 per cent above base rate for second charge residential mortgages. The products are available exclusively through packager V Loans […]

Berry-Jason-700.jpg

Analysis: Partnerships need to be reciprocal

Voteforpolicies.org.uk is a clever concept that lets you read the policies of unnamed political parties and choose which you agree with most before revealing which party you should vote for.  So you are not voting on popularity or how camera-friendly leaders may be, nor making a decision based on what the papers or your friends […]

Newsletter

News and expert analysis straight to your inbox

Sign up