Aviva new business soars after Friends Life deal

AVIVA has seen the value of its new business jump by a quarter in the first nine months of the year following its acquisition of rival Friends Life.

Aviva chief executive Mark Wilson

The insurance giant revealed new business had lifted by 25 per cent to £823 million over the period compared to a year ago, notching up its 11th straight quarter of growth.

Aviva snapped up Friends Life for £5.6 billion in April, sealing the industry’s biggest merger since 2000 and creating a group comprising 31,500 employees.

The firm said it has so far achieved £91m of savings from the deal as part of its plans to make £225m of annual savings by the end of 2017. It added its savings programme was ahead of schedule.

Earlier in the year it revealed it expects to cut 1,500 jobs as it sheds a third of its offices.

Boss Mark Wilson said yesterday: “The acquisition of Friends Life is everything we expected it to be. At the same time our UK life business continues to grow and our customers are responding positively to the full range of pensions freedoms we offer.”

Shore Capital analyst Eamonn Flanagan said: “All in all, good progress from Aviva.”