Aviva plc: Interim management statement - 3 months to 31 March 2009

Aviva plc: Interim management statement - 3 months to 31 March 2009


* Sales remain resilient
o Worldwide sales up 5% to £10,313 million
o Life and pensions sales up 11% to £9,569 million
o Group margin in line with full year 2008
o Total bancassurance sales up 15%
o Benefiting from diverse distribution, geography and currency movements
* General insurance on track
o Group COR in line with ‘meet or beat’ target of 98%
* Significantly enhanced capital position
o IGD solvency surplus £2.5 billion at 31.3.09 after deducting final dividend (31.12.08: £2.0 billion)
o Increased hedging for equity market movements at 31.03.09: 40% fall would reduce IGD by just £0.2 billion; a 40% rise would increase IGD by £0.8 billion

Andrew Moss, Aviva’s chief executive, commented:

“It’s encouraging to see that people are continuing to save with companies they trust, like Aviva. Sales are resilient and we’ve taken action to improve margins in key markets. It is particularly pleasing to see bancassurance sales rebound as banks refocus on insurance as an important contributor to their earnings.

“We continue to manage our capital position effectively. At the end of March our capital surplus was significantly increased at £2.5 billion, after allowing for payment of the 2008 final dividend.

“A disciplined approach to writing business and a focus on capital management will continue to serve us well. We have a diversified business which spans 28 countries and sells through a range of distribution channels. We continue to navigate a steady course through challenging times.”

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