Its long-term sales, excluding bulk purchase annuities, were up “slightly” at £11,953m owing to a 20% growth in protection sales and 12% growth in equity release and annuity sales.
Aviva stated in the results: “We continued to expand our distribution footprint, including an exclusive five year agreement with Tesco to distribute protection products.
“Our health business performed strongly, with net written premiums up 12% at £528 million (2011: £473 million).”
International financial reporting standards (IFRS) operating profit from Aviva’s life insurance business has fallen by 5% to £1,831m from £1,926m in 2011, primarily “as a result of adverse foreign exchange movements”.
In the UK, Aviva’s life insurance business operating profit reduced to £887m compared to £917m in 2011; new business profitability increased by 17% to give an overall increase in new business income of 9%.
According to Aviva, key drivers of the new business increase have been increased protection sales and pricing actions together with lower bulk purchase annuity sales.
The results also showed increased protection sales globally.
