Aviva sales slide as it focuses on profit
Aviva boosted general insurance sales in the first quarter of 2011, but life sales were down as it changed its product mix and focused on driving up profits instead.
Promotion: Aviva was buoyed by the success of an ad campaign with Paul Whitehouse
Net written premiums in the general insurance arm were £2.7bn in the three months to March 31, up 9% on a year ago.
But in the insurer's life business, long-term savings sales were £8.8bn, down 14% compared with a year ago.
Worldwide total sales were 9% lower at £11.5bn.
Chief executive Andrew Moss said: 'We have made a good start to the year. Our general insurance performance is a real highlight; sales are up strongly and profitability is good.
'Life sales are down on 2010, primarily because we have driven new business returns higher by changing our product mix to focus on more profitable business.'
Aviva highlighted the performance of its motor and household arm after the division secured £1bn of UK sales in the last quarter.
It now has 2m motorists on its books after adding 580,000 UK customers since the start of 2010, including 180,000 as a result of the roll-out of direct pricing to brokers.
Aviva has also been buoyed by the success of an advertising campaign featuring actor Paul Whitehouse.
It expects to see a continuation of recent industry trends on premiums after its own rates for motor cover rose by 24% over the past year and homeowner insurance lifted 6%.
Shares in Aviva are up 1.6p at 435.6p in trading today.
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