Aviva sees strong UK protection results

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Aviva has seen its UK protection business grow amid strong overall performance from its life insurance and pensions business.

It appears the provider's television campaign started to bear fruit as it claimed second place in the protection market and reiterated the aim to become number one in the near future.

The insurer called the result a "real highlight" with life and pensions sales increasing by 10% in 2011 to £11.3bn.

UK life insurance operating profits increased by 8% to £920m, double the level six years ago, while new business profitability remained strong with an internal return rate (IRR) of 15%.

General insurance & health (which includes the private medical insurance business) net written premiums were up 8% to £9.2bn (from £8.5bn).

However, profitability slipped slightly in this sector to £552m from £579m.

The insurer increased its overall share of the UK life and pensions market to 12%, including the protection growth.

Overall, Aviva's operating profit rose 6% to £2.5bn with its life insurance operating profit up 7% to £2.1bn from £2bn.

Andrew Moss, group chief executive of Aviva, said the business delivered a strong operating performance in 2011.

"Despite challenging market conditions we have beaten all our operating targets," he said. "We have made good strategic progress, focusing on markets where we will grow and earn higher returns.

"Aviva continues to perform well, even in tough times.

"We made great progress in the UK, growing profits and market share and we increased operating profits in Europe.

"Looking to 2012, we have increased our operating targets underlining our confidence in Aviva's continued success," he added.

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