Aviva lifted by UK demand

Norwich Union owner Aviva said half-year profits rose by 27% today after benefiting from a strong pick-up in the UK pensions market.

Aviva said sales in UK long-term savings rose 43% to £6.9bn (€10.2bn), helped by an 86% increase in individual pensions business following regulatory changes and amid industry-wide warnings of potential retirement shortfalls.

The group said its 11.8% share of the long-term savings market at the end of the first quarter meant Norwich Union was again the sector’s leading company.

Aviva’s overall performance showed operating profits up 27% to £1.7bn (€2.5bn), while it also increased the dividend payment to shareholders by 10%. Around 55% of the group’s life and pensions new business came from outside the UK in the first six months of the year.