Aviva's Irish sales increase 46% to €1.8bn

Aviva's sales in the Republic increased 46 per cent in the first nine months of 2007 compared to the same period last year, with growth coming from both Ark Life and Hibernian.

Aviva recorded Irish sales of £1.3 billion (€1.86 billion) in the first nine months of the year, when measuring sales on a Present Value of New Business Premium (PVNBP) basis.

The contribution from new business was £18 million, which was down 5 per cent on the £19 million in new sales won in the first nine months of 2006.

The insurance company described the growth as "excellent" and said it had been supported by major product initiatives to boost sales and improve margins. The 2007 new business margin of 1.4 per cent was an improvement on the full-year 2006, the company said. About 50 per cent of the Irish sales came from Ark Life, which is owned by Hibernian and AIB, which has a 25 per cent stake in the business.

Ark Life sales increased by 56 per cent in the first nine months compared to the same period the previous year, generating sales of £651 million (€932 million).

Single premium pension sales were the main driver of Aviva's growth in the Republic, with sales more than doubling in the first nine months to £387 million.

Aviva, which is the UK's biggest insurer by assets, said group life and pensions sales rose 20 per cent in the first three quarters, with the figures lifted by a US acquisition and stronger than forecast gains in Europe.

New business in the nine months ended September 30th increased to £22.9 billion from £19.1 billion in the year-earlier period, the London-based company said in a statement.

Profit on new business in the first nine months across the group rose 23 per cent. - (Additional reporting, Bloomberg)