Aviva parent to Norwich Union: Sales Surge
Oct 28, 2008 | Comments 0
Aviva the Insurance giant reported 12 percent increase in nine-month pension and life sales. The move shows that the company can hold strong in the present financial crisis.
Aviva reported sales of £25.7 billion which was much better than expected, the Insurer also said that they will continue to withstand further falls within the stock market.
However the recent damaging share declines have already wiped off £600 million off it required capital buffer since the end of September, as from October 24 standing at £1.3 billion.
Aviva chief executive, Andrew Moss said that “Our share price has been affected by the huge uncertainty in financial markets, but people around the world are still saving and buying insurance from brands they trust, like Aviva.”
For Aviva’s core UK division the results showed a tougher market, with new business on pension and life declining 1 percent to £8.63 billion in the nine months to September 30. Pressure was also felt by the general insurance side of the business.
The Norwich Union parent also reported they may need to re-work the terms under a planned £1 billion payout to with-profits policyholders due to the financial markets decline.
Filed Under: Business News