Aviva sees sales decline
The insurance giant Aviva has seen a decline in world-wide sales in the nine months to the end of September. As of the end of the third quarter, total sales stood at £30,597m down 5% on the same period of 2010.
The insurance giant Aviva has seen a decline in world-wide sales in the nine months to the end of September. As of the end of the third quarter, total sales stood at £30,597m down 5% on the same period of 2010.
Not all the figures were as gloomy, however. The key "operating ratio" figure, which combines investment and underwriting figures to show whether Aviva is making a profit, stood at 96% in September, better than the 97% at the same point in 2010. A figure over 100% implies the firm is making less money from investments than it is liable for in insurance claims.
The "internal rate of return" figure has also improved from 2010, rising to 13.8% from 13.1%.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Nevertheless, there will be concerns over the firm's capital position as economic storms rage across the Eurozone. The "solvency surplus figure" is £2.7bn, down on the same number at the end of June and significantly down on 2010 when it was £4bn.
Commenting on the results, Chief Executive Andrew Moss said:
"In general insurance we are seeing profitable growth and our life business continues to generate strong profits and cash flows. We have excellent customer franchises and despite the challenging sales environment in a number of European markets we remain on track to meet our financial targets this year."
Despite his fine words, Aviva's share price dropped sharply this morning, down 2.23% shortly after the open in London.
BS
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
8 of the best properties for sale near ski slopes
The best properties for sale near ski slopes – from a luxury cabin in Geilo, one of Norway’s premier ski resorts, to a large chalet in Valais, Switzerland
By Natasha Langan Published
-
Cash hoarders take total UK savings to £2 trillion – why aren’t we investing?
Investment-shy Brits are hoarding huge amounts of cash in their savings accounts. We look at the case for saving versus investing.
By Katie Williams Published