Aviva has said it has bucked a decline in the market for guarantees with a “double digit” growth in annuity sales.
In its half year results this morning, Aviva said it had seen higher sales volumes across both annuities and equity release, which had increased profit across the two lines by 26 per cent to £309m.
However, it also put some of the growth down to “back book asset mix optimisation”.
An increase in assets under administration to £109bn in its long-term savings products excluding annuities resulted in a 39 per cent increase in profit for the division, coming in at £89m, while protection profits also jumped 17 per cent to top £133m.
Overall operating profit for Aviva’s UK life business increased 7 per cent to £750m. Its UK Life platform now holds £16.5bn in assets, up 27 per cent.
Aviva recently moved back into offering advice, but did not mention its plans for the business in the results.
Group chief executive Mark Wilson says: “The benefits of our geographic and product diversity are clear and Aviva has numerous sources of growth. In the first half of 2017 we increased sales right across the group and delivered strong growth in operating profit in the UK, Europe and Aviva Investors.
“We are growing and investing in the UK. We have grown top line sales and bottom line profit in UK general insurance, pensions, annuities and protection. Our digital business continues to make progress, making insurance simpler and more convenient for customers.”