Cost-cutting Aviva in line for strong 2010

2nd Nov 2010 07:40

Insurer Aviva is on track to deliver strong profitable growth for 2010 after a decent third quarter following "good sales growth" from both life and general insurance businesses. Worldwide total sales were up 5% during the first nine months of 2010 at £35.9bn, long-term savings sales rose 6% to £28.6bn, and total life and pension sales also grew by 6% to £25.6bn.In the UK, total sales improved by 16% to £12.3bn, long-term savings sales grew 22% to £8.9bn, and life and pension sales increased by 15% to £7.6bn.The company has also confirmed its efficiency drive will deliver £200m of cost savings and a further £200m of efficiency savings by the end of 2012. "New business profitability has improved and we're on track to generate a very significant £1.5 billion of capital in 2010," chief executive Andrew Moss said Tuesday."As we look to the next phase of our growth, Aviva will sharpen its geographic focus and deepen its position in its key markets through its strengths in both life and general insurance."