According to the latest figures from Aviva – which cover the first nine months of the year – retirement sales, including annuities and equity release, were estimated to be £5.3bn.
This is 27% lower than last year, but this is due to a “particularly strong” nine-month period last year.
Aviva said equity release sales were 39% up, which it attributed to the launch of its new proposition. Specific figures were not shared.
Protection sales came to £266m during the first nine months of the year, which is 11% down, but this was expected following the consolidation of prepositions after its acquisition from AIG.
Individual protection stood at £140m, which is down 6% on the same period last year, while group protection was £126m, a decline of 15% year-on-year.
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The report added that it expected the full-year operating profit for the business to be close to £2.2bn.
This was supported by six months of Direct Line operating profit, coming to £150m.
Looking at protection, the firm said it expected the sales decline seen in the first nine months to “further moderate” following the consolidation of propositions in August 2024.
Amanda Blanc, group CEO of Aviva, said: “Over the last five years, we have transformed Aviva, delivering again and again for our customers and shareholders. We continue to make excellent progress and now expect to achieve our financial targets in 2025, one year early. Crucially, we have achieved this significant milestone thanks to the consistently strong performance of Aviva, before any impacts of the Direct Line acquisition are included.
“The integration of Direct Line is well underway and we are increasingly confident of reaping the full benefits of this acquisition, contributing materially to Aviva’s future growth and shareholder returns. We now expect to achieve £225m in cost synergies, nearly twice our original estimate; unlock at least £500m of capital synergies, and we expect to resume share buybacks next year, at a higher level in response to the increased share count.”
She continued: “Our third quarter numbers show that once again we are growing profitably right across the group. In general insurance, premiums are up 12% to £10bn, and in wealth, we secured net flows of £8.3bn, and now have £224bn of assets. We are accelerating our growth in capital-light areas, in line with our strategy, and now expect our business to be over 75% capital-light by the end of 2028. This is good news for shareholders, as we deliver stronger growth and better returns, using less capital.
“The outlook for Aviva has never been better. The advantages of our diversified business, 25-million-strong customer base, and majority capital-light earnings, mean we expect to deliver more and more for our shareholders and customers. And so today, we are also setting new financial targets, raising our ambitions yet again, and reflecting the strength of our confidence in the continuing growth potential of Aviva.”
