Aviva has seen protection and health sales decline 7% year-on-year, according to a trading update for the first quarter of the year.
The update, published today, reveals the insurer saw sales of £630m in Q1 2021, down from £674m in Q1 2020.
While the group’s protection business saw sales rise 15%, health sales dropped 5% despite an increase in new business.
Looking ahead, the group says it remains optimistic individual protection sales will improve due to its plans to bring its products to price comparison websites and a gradual opening up of the economy which it expects to drive increased demand during the rest of the year.
The group adds its health business has recently updated its consumer and SME propositions, with good early indicators based on volumes in March, which was one of its strongest months on record.
Sales up overall
Overall the group reported record quarterly savings and retirement net flows and its highest Q1 sales in general insurance for a decade.
It also saw £1.5bn coming in through its workplace offering, up 26% from the £1.2bn reported in Q1 2020.
Amanda Blanc, group chief executive officer, said the organisation made “very good progress” in the first quarter, concluding its refocus by selling eight non-core businesses which will generate £7.5bn once completed.
“We are now focused on improving the growth and profitability of our businesses in the UK, Ireland, Canada and Aviva Investors,” she said.
“We are pleased with the growing momentum in key areas as we capitalise on our leading market positions.”
Blanc added: “We have continued to support our customers dealing with Covid, including extending cover and deferring monthly payments for those experiencing financial difficulty.
“Our positive trading performance in the first quarter of 2021 reinforces our confidence in the targets we announced earlier in the year.”
