Aviva reports increased sales, profitability, efficiency and service for 3rd quarter
At a UK headline level, Aviva’s Life business has continued to perform well with strong and profitable sales. Their long-term savings sales were up 22% to £8,868 million over the same nine month period last year, life and pension sales increased by 15% to £7,631 million and investment sales almost doubled to £1,237 million.
In general insurance, sales were up for the third consecutive quarter and above the 2009 third quarter level, with nine month general insurance net written premiums of £2,992 million. This improving position reflects excellent retention levels across personal and commercial customers, effective marketing campaigns and the success of the RAC insurance panel.
As part of today's results at a global level they've announced cost savings of £200m and a further £200m in efficiency gains by the end of 2012. In the UK they expect to deliver a £200m benefit to the profit and loss account from a combination of keeping their costs static as they grow their sales and a continued focus on cost and efficiency. The hard work they have already done to transform their UK operations over the last few years and the continuing growth momentum of their businesses put them in a good position to do this.
Aviva continue to make excellent progress in growing their customer franchise as they deepen their distribution partnerships and invest in their brand and customer service. In the third quarter they saw the highest levels of brand awareness since the rebrand and ongoing high levels of consideration. Aviva believe that the strength of their brand and focus on service to their 19 million customers is playing an important role in the growth of their life and general insurance businesses. They also renewed their home insurance partnership with Santander and continue their planning for the launch of new life protection products with them in 2011.
Customers continue to turn to brands they can trust as the wider economic environment remains uncertain and Aviva is committed to educating people on the relatively low cost of protecting themselves and their families and provide for their future financial security.
Aviva is unique in the UK as being the only major insurer offering life, health and general insurance through a broad range of distribution channels. This brings significant strategic advantage from capital diversification, distribution strength and the opportunity to benefit from their scale, shared customer base and brand. With one in three UK households already owning an Aviva product, the aim is to drive value across the UK business and see the potential to increase the number of policies each customer holds.
Looking to the future Aviva will retain its focus on maximising profitability as they grow the life business as well as continuing to grow their general insurance sales profitably into 2011 through improved pricing, retention and new marketing initiatives.
For Aviva's full statement please click here...
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