By Vladimir Guevarra Of DOW JONES NEWSWIRES LONDON -(Dow Jones)- U.K. insurer Aviva PLC (AV.LN) on Wednesday posted a 25% fall in new business sales in the third quarter, as weaker economies in many of Aviva's markets led to cuts in insurance spending. Aviva, the U.K.'s second-largest insurer by market capitalization, said the outlook on its profitability this year is good but the "economic outlook in the markets in which we operate remains uncertain." The company said that total life and pensions new business sales for the quarter ended Sept. 30 was GBP6.59 billion, down from GBP8.82 billion in the same period last year. For the first nine months of the year, new business sales dropped 11% to GBP24.06 billion. This is slightly lower than the GBP24.8 billion average forecast from 10 analysts polled by the company. It also said its capital position remains strong, with surplus capital rising to GBP3.7 billion from GBP3.2 billion at end-June and from GBP1.9 billion in September last year. Chief Executive Andrew Moss said: "The outlook for the group's total profitability in 2009 is good despite a reduction in sales driven by continuing customer caution and active management of sales volumes to optimize profitability." Aviva shares have fallen steeply in the first quarter but have since recovered to levels seen at the start of the year. Aviva's shares closed 2.6% lower Tuesday at 379 pence, giving the company a market capitalization of GBP10.21 billion. Company Web site: www.aviva.com -By Vladimir Guevarra, Dow Jones Newswires. Tel. +44 (0) 2078429486, vladimir.guevarra@dowjones.com Order free Annual Report for Aviva PLC Visit http://djnweurope.ar.wilink.com/?ticker=GB0002162385 or call +44 (0)208 391 6028
