Aviva sales off in 2009, show growth in 4Q
February 4, 2010 by Sheryl J. Moore
By KAREN MRACEK • kmracek@dmreg.com • February 4, 2010
Aviva’s life and pension sales were off last year, but things looked up in the fourth quarter of 2009, the company reported today.
The London-based insurer “increased sales across all our regions and saw the first signs of an improved appetite to save among our customers,” said Aviva’s group chief executive Andrew Moss in a statement.
The company reported that overall sales in 2009 were off 17 percent, but fourth quarter sales were up 14 percent over the previous quarter. The company will report its full financial results on March 4.
Aviva USA, which is headquartered in Des Moines, saw new business sales drop 33 percent for the year, as the company tried to slow its growth in its annuity businesses and decided not to write funding agreements in the year.
Excluding the funding agreement made in 2008, new sales were down 17 percent.
However, sales in the three months ending Dec. 31, showed a 45 percent jump over the previous quarter, helped by an improvement in annuity and life sales.
“Customers continue to seek products with guarantees and recognize Aviva as one of the stronger market participants,” the company said.
“However, demand for annuities in the first half of the year exceeded our desired production, so we took actions to focus on capital efficiency and ensure that the overall business mix for the year was consistent with our strategic goals.”
Annuity sales were down 27 percent in for the year, but up 44 percent in the fourth quarter over the previous quarter. Life product sales — which includes indexed universal life and term assurance products — were 19 percent higher for the year, and 47 percent higher in the fourth quarter compared to the third.
“We start 2010 in a strong position,” Moss said. “Our focus remains on growing our business profitably and improving our operational efficiency so that we can fully benefit as our major markets return to economic growth.”
Shares of Aviva on the NYSE were trading down 6.2 percent to $12.10 at noon CST.
