Aviva confident of overcoming turbulence

Norwich Union parent Aviva today reported falling first quarter sales in its UK division, but said stronger growth in the United States and Asia-Pacific regions helped offset the tough domestic market.

The group posted a 5% increase in worldwide life and pension sales to £8.17bn (€10.3bn), despite a 3% drop in UK new business, at £2.77bn (€3.5bn).

Aviva cautioned that the UK market was set to remain “constrained” this year, but stuck by plans for full-year growth in the division of up to 0.5% as it hoped for a pick-up in sales in the second half.

Andrew Moss, group chief executive of Aviva, said: “While we expect some further short-term uncertainty in some of our markets, the strength of our balance sheet and the prudent management actions we took last year will help us ride out economic turbulence.”