Aviva’s UK health and protection operation recorded an 18% decline in new business sales from £51m to £42m in the third quarter of the year compared to the same period in 2021.
It means the insurer’s cumulative new business sales from January to September were down 3% to £142m from £146m in the previous year.
It appears the individual protection market is responsible for the falls with Aviva saying it was seeing strong health insurance and group protection sales in commentary around its quarterly update.
Strong demand for SME health cover
Referencing the alternative present value of new business premiums (PNVBP) scale for calculating sales in its announcement, Aviva said its UK health and protection business slipped 1% in the third quarter but recorded 4% growth across the first nine months of the year.
The insurer attributed this to a “good performance from its group protection and health business which was partly offset by individual protection”.
Protection sales were up 3% over the first nine months of the year with strong performance in group protection which recorded new scheme wins and strong retention of business, Aviva said.
This offset individual protection where volumes were flat and present value of new business premiums was down due to higher interest rates.
Health sales were up 5% over the same period as SME business continued its strong performance with consumer demand for private medical insurance remaining positive, the insurer added.
Group protection scheme wins
The group’s Ireland Life business has seen sales grow from £6m to £8m in Q3 while the year-to-date figures climbed 50%, reflecting improved margins as the group’s integrated product offering is embedded and improved reinsurance terms.
Doug Brown, CEO of UK & Ireland Life at Aviva, said: “Health and protection sales have increased. In group protection we have seen good performance boosted by new scheme wins and strong retention in corporate schemes.
“The SME and consumer businesses in health have also performed strongly with demand for private medical insurance remaining positive.
“The breadth of our diversified UK life business gives me confidence that we will continue to help our customers to save for their future and to protect themselves and their families.”