Hibernian Aviva life and pensions sales fall 29%

Life and pension sales at Hibernian Aviva fell by 27 per cent to £1.29 billion sterling (€1.44 billion) in 2008, according to new figures released by its London-based parent Aviva.

Hibernian Aviva employs 2,200 staff in offices in Dublin, Cork and Galway and is outsourcing 450 jobs to Bangalore, India by the end of 2010.

Aviva, the UK's largest insurer, said today life and pensions sales rose 8.6 per cent to £34.58 billion in 2008 as its business benefited from currency movements including the appreciation of the euro.

Aviva's European sales rose 8 per cent on a constant currency basis to £17 billion, although they were down 7 per cent when local currency movements are factored in.

Hibernian Aviva said its Irish sales declined 27 per cent as volatile equity markets, the property slowdown and slowing economic growth, deterred consumers. On a local currency basis the decline in Life and pension sales in Ireland last year was 38 per cent.

Sales at Hibernian Aviva suffered the sharpest decline in life and pensions sales of its European operations, with sales at its Italian unit falling 22 per cent.

A Hibernian Aviva spokeswoman said while more detailed figures for Hibernian Aviva would be released on March 5th, the company had retained its market share of 17 per cent in the Irish life and pensions sector.

Aviva said in its annual results today its dividend was safe as it reported a forecast-beating 8.6 per cent rise in 2008 sales.

The company also reported a strengthening of its regulatory capital cushion, and said its policy of paying a dividend covered 1.5 to 2 times by earnings was unchanged.

The company reported a capital surplus of £2 billion at December 31st, up from £1.3 billion in October, and estimated it would still have a buffer of £1.3 billion if equity markets fell 40 per cent from end-2008 levels.

Additional reporting Reuters