But the firm’s worldwide life and pension business rose by 11 per cent to £9.56bn from £8.6bn.
Aviva has increased its capital surplus by £500m to £2.5bn from £2bn last December and has increased its hedging for equity market movements.
Protection sales fell by 24 per cent to £245m after the Competition Commission’s PPI ruling. Annuity sales fell by 8 per cent to £475m from £518m. Sales of collective investments fell by 60 per cent to £175m.
Negotiations with policyholder advocate Clare Spottiswoode on reattribution of inherited estates are drawing to a close.
Marketing director David Barral says: “Given just how tough markets are, we do not think this is a bad performance in the UK at all. If you exclude PPI, we have written more protection business than since June 2006. The reattribution process has lasted three years. We are hoping to draw negotiations to a close in the near future. No decision has been made yet whether to proceed.”