Aviva sales dip on European turmoil

Insurer Aviva said its life insurance sales fell in the first nine months of the year, reflecting tough conditions in its key European markets and a decision to walk away from less profitable business.

By The Newsroom

Published 3rd Nov 2011, 09:37 BST

Aviva, Britain’s second-biggest insurer, had life insurance sales of £23.6bn in the nine months to September 30, down eight per cent compared with the same period last year, it said on Thursday.

The decline in life sales was partly offset by a better performance in general insurance, where sales were up nine per cent at £7bn.

“Whilst the market is likely to remain challenging in the near term, we continue to make good strategic progress and are strengthening customer franchises in key markets,” said Aviva chief executive Andrew Moss.

The group, which has around 4,800 Yorkshire employees, has its UK life and pension business based in York.

Aviva shares closed at 325.1p on Wednesday, valuing the company at about £9bn. The stock has fallen 18 per cent in the year to date, underperforming a 14 per cent decline in the European insurance index.