Aviva bullish as sales rise

Published on Tuesday 28 October 2008 20:27

INSURANCE giant Aviva yesterday moved to reassure the markets over its financial strength in "unprecedented times" as it reported a 12 per cent rise in nine-month life and pensions sales.

The Norwich Union parent reported better-than- expected sales of 25.7 billion and insisted it was strong enough to withstand even further substantial stock market falls.

But the recent devastating equity declines have already wiped 600 million off its required capital buffer since the end of September, taking it to 1.3bn as at 24 October.

Andrew Moss, Aviva's chief executive, said: "These are unprecedented times.

"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."

Aviva's results revealed a tougher market for its core UK division, with life and pension new business down 1 per cent to 8.63bn in the nine months to 30 September and general insurance sales also under pressure.