Aviva’s Irish arm generates £3m worth of new business in Q1

Aviva’s Irish arm generated £3 million worth of new business in the first quarter of 2014, a similar performance to last year, the company reported today.

The British insurer, however, saw mixed performances overall in the first part of the year, with strong Asian and European markets offset by a big drop in UK business after a shake-up of its products and Britain’s pensions system.

The company's key measure of growth in life insurance - value of new business - showed a 22 per cent decline in Britain, while new business in Asia grew 96 per cent and Italy, Spain and Ireland collectively doubled, Aviva said.

In its quarterly trading statement Aviva said the drop in UK volumes was largely driven by a rejig of its annuities business - focusing on selling fewer, higher margin products - which it started a year ago.

Chief executive Mark Wilson called first quarter performance "reassuringly calm and stable", in light of high weather-related insurance claims at the start of the year and the shake-up of Britain's pensions system that has hit annuity sales across the industry.

He said the general insurance arm had taken a hit amounting to around £40 million related to a "particularly harsh" winter in Canada.

Storms and floods in Britain during January and February also cost the firm around £60 million in the first quarter, he added.

Reuters