Aviva says 85% of new business value is RDR-proof

Aviva has said 85% of its new business value is unaffected by changes brought on by the RDR.

In a Q1 statement from chief executive Andrew Moss (pictured), Aviva said 65% of sales of its individual pension are already written on a consumer agreed fee basis.

"We are well prepared for RDR. Our multi-product, multi-distribution approach, including being the market-leader in bancassurance, is a unique strength as 85% of our new business value is unaffected by RDR," it said.

During 2011, Aviva said it will be integrating its adviser web portal and existing wrap platform to provide a single base for its investment and risk-based business on the biggest platform in the market.

Elsewhere, the life company reported UK life and pension sales of £2.5bn were down 2% on Q1 2010.

However, total pension sales rose 19% to £1.1bn, up from £941m in Q1 2010, led by individual pensions (including group personal pensions), which were up 39%.

Aviva attributed the increase to its investment and focus on those advisers who it is "confident will succeed pre- and post-RDR".

Sales of individual annuities were 21% higher at £645m, but sales of bulk purchase annuities were down £140m from £344m in 2010. Aviva said the drop was caused by choosing not to write business that did not meet its financial criteria.

Protection sales were up 8% at £250m, which Aviva said was boosted by its successful family protection television advertising campaign.

Investment sales were lower at £327m, down from £426m in Q1 2010, which Aviva said primarily reflected exceptionally high 2010 sales as investors returned to property funds in the first part of last year.