Aviva Sales Decline

Share On Facebook
share on Linkedin

Aviva Plc, the second largest insurer in the United Kingdom, released a performance report on the nine months ending September 30, 2011 on Thursday. European life and pension sales were down 18% from the same time last year, reflecting turbulence caused by the European Debt Crisis. Despite a 6% gain on sales in the UK, struggling sales in the US and Europe brought total long term savings sales down 8% on the year to £23.6 billion.

In the face of these losses, Aviva Chief Executive Officer Andrew Moss responded with confidence; “Markets have been exceptionally volatile but we have delivered a strong operating performance in the first nine months and we remain on track to meet our financial targets this year. Focusing on capital generation and our capital and liquidity position will continue to be priorities.” Apart from the losses in Europe sustained as a result of the debt crisis, other aspects of Aviva’s business have remained strong. The combined operating ratio has improved to 96% for 2011, while UK general insurance sales are up 12%. Despite their success in the UK, Aviva is being hit harder than its competitors, who are less exposed to volatility in the European market.

The mixed results from the news release have left the stock price relatively even, up around 0.8% in the early afternoon. As Aviva continues its policy of downsizing global operations and focusing on its most profitable markets, the CEO responded to shareholder concerns, saying, “Aviva is fitter and leaner today. Whilst the market environment is likely to remain challenging in the near term, we continue to make good strategic progress and are strengthening customer franchises in key markets, notably the UK.” Though Aviva’s profits are down from last year, they remain ahead of their short term financial targets and have performed well within Britain, taking on more than 318,000 new motor insurance customers in 2011 alone.

Andrew Moss’s unwavering confidence in the future of Aviva and its ability to meet their financial targets has had a neutral effect on investors, maintaining a steady share price throughout the day Thursday.

 Aviva News Release November 3, 2011
 UK Insurer Aviva Is Getting Back On Track By Stressing Profits, Not Scale

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20220816 07:41:25