Aviva, the UK life and pensions company formed by the merger of Commercial Union and Norwich Union, has published preliminary results for the 2003.
The company reported strong performance in both long-term savings and general insurance businesses It says that life results were “robust,” with good sales growth in Continental Europe; signs of confidence returning to UK market; and margins up to 26.1%
The company says it also experienced significant growth from bancassurance, with sales up 27%; this channel now accounts for 25% of new life and pensions sales. Average margins were 39.7%.
“These are strong results,” says Richard Harvey, group chief executive. “Our distribution partnerships in Europe have made a significant contribution to our life results. Once again, our general insurance business has shown that its scale and focused approach can deliver excellent and sustainable results. We’ve driven improvement in our life business margins through pricing and expense control. We’ve also made operational improvements and reduced costs across the Group in a very competitive market. Aviva is fit for the future with a strong capital position. We welcome the new UK realistic reporting regime and are well-prepared for it. Investment markets are showing signs of recovery and some consumer confidence is returning. We believe Aviva is the best-placed life company in Europe to capture the market upturn, gaining competitive advantage from our extensive distribution networks, strong market positions and financial strength.”