Aviva's protection sales rose by 23 per cent to £330mn over the first nine months of 2023.
Explaining this increase, Aviva stated that it was driven by strong growth in individual protection, and in health which was supported by higher corporate new business.
The company also reported growth in its retirement division, with sales up 2 per cent driven by higher individual annuity volumes.
Aviva UK and Ireland Life division chief executive Doug Brown said: “Despite challenges in the mortgage market, we have seen protection sales grow through our IFA and direct channels, and we are continuing to see strong customer demand for our Health products, where we have increased sales significantly.
"In our retirement business, we have seen strong growth in individual and bulk annuities, where the market remains extremely active, and customers are benefitting from higher interest rates."
Aviva's wealth division saw net flows of £6.4bn represented 6 per cent of opening assets under management. But these flows were 9 per cent lower than the same period last year due to "challenging market volatility".
Reaction
Speaking on the update, Aviva's chief executive Amanda Blanc said: “Aviva has delivered nine months of strong growth. We have clear momentum, driven by our uniquely diversified business, as well as our leading positions in growing markets.
“We have continued to expand our capital-light businesses, which now make up half of our portfolio.
“We see significant opportunities to generate further higher return, capital-light growth in the future as we prioritise these segments.
Brown added: “I am pleased with our performance across our insurance, wealth, and retirement business.
“In wealth, our workplace business continues to trade well, winning over 350 new corporate pension schemes so far this year – which surpasses the same time last year – while also seeing strong retention."
Future prospects
Aviva said it remains on track to exceed its medium term targets and expects to beat its own funds generation and cash remittances targets to deliver its target of £750mn gross cost reduction by 2024 one year early.
Additionally, its 2023 guidance for 5 to 7 per cent growth in operating profit from £1.3bn in 2022 remains unchanged, subject to normalised weather conditions for the remainder of the year.
Speaking on the outlook for the future, Blanc stated: “Aviva’s prospects are very positive.
“I am extremely confident that Aviva will continue to deliver more for shareholders, and further regular and sustainable returns of surplus capital.”
tom.dunstan@ft.com
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