Aviva's UK sales tumble in third quarter

4th Nov 2009 07:37

Sales fall sharply in both of life group Aviva's arms in the last quarter despite the recent strong rally in equity markets.Total sales fell by 11% in the three months to September from £30.4bn to £27.1bn, with the decline much steeper in local currencies.Life and pensions sales dropped by 11% from £27bn to £24bn, while investment sales were £3bn, down from £3.4bn. On a local currency basis, total sales fell by 19%. In the UK, life and pension sales reduced by 25% though Aviva says its margin for the year to date improved to 2.5% (HY09: 2.1%).Aviva's financial position did improve. Embedded value NAV rose to 520p from 416p, while the group's solvency buffer improved to £3.7bn from £3.2bn. The group also yesterday floated its Dutch business, Delta Lloyd, on Euronext Amsterdam, which will realise gross proceeds of £1.03bn for a 42% stake."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. 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," chief executive Andrew Moss said.