Aviva has reported a 17 per cent drop in UK life and pensions sales, from £8bn in the third quarter of 2012 to £6.7bn in Q3 this year, as annuities sales plummeted by a third.
The insurer’s Q3 interim management statement, published today, reveals pensions, annuities, bonds, protection and equity release sales have all fallen in the last 12 months.
Annuities sales were down 32 per cent, from £2.5bn in Q3 2012 to £1.7bn in Q3 2013, while pensions sales fell 4 per cent, from £4bn to £3.8bn.
Protection sales fell 15 per cent over the same period, from £920m to £781m, and equity release new business dropped 12 per cent, from £338m to £297m.
Finally, year on year bond sales were down 70 per cent, from £322m to £97m.
The value of all new business written in the UK increased 5 per cent, from £288m in Q3 2012 to £302m in Q3 2013.
Aviva group chief executive Mark Wilson says: “Our two major life cash-generators, UK and France, increased VNB by 5 per cent and 33 per cent respectively.
“In the UK deliberate actions to improve margin led to an increase in VNB and lower volumes, both in line with our expectations.”