Aviva’s protection sales were down by a combined 11% over the first nine months of the year however health business has risen 13% in 2025, the insurer reported.
The figures showed a £32m fall in protection sales from £298m to £266m in the year to the end of September as a result of their acquisition of AIG last year.
The third quarter itself was more positive as health insurance and group protection sales were up, although individual protection new business slipped again.
Aviva added that the combined protection and health value of new business (VNB) of £181m was up 1% as higher margins more than offset lower sales following the consolidation of propositions.
It is also aiming to achieve the ambition of £100m operating profit from its health insurance business in 2026.
A fresh distribution agreement for individual protection products has also been made with NFU Mutual, continuing the arrangement originally with AIG Life.
Health premiums break £1bn
Aviva said its in-force private medical insurance (PMI) premiums had risen 14% to break the £1bn mark following new business growth and price rises.
Health insurance sales rose 9% to £42m from July to September – up from £38m in the same period last year on an annual premium equivalent (APE) basis.
This took it to £118m over the nine months, up from £105m.
“Health sales were up 13% in a growing market reflecting continued momentum across our propositions,” Aviva said.
“In-force premiums of £1bn were up 14% versus the prior year, driven by strong new business volumes and pricing actions,” it added.
AIG consolidation still hitting protection
Protection results were still being hit by the acquisition of the AIG Life UK business the insurer noted but said it expected these to ease in coming periods as the deal was completed in August 2024.
Individual protection sales dropped 9% to £49m from £54m in the July to September period bringing it 6% lower over the nine months to £140m from £149m.
Group protection sales were up 12% from £40 to £45m in the latest three months, recovering from the first half of the year, but remained down 15% with sales of £126m over the nine months as a whole, down from £149m.
“Protection sales of £266m were lower by 11%, as expected, given the consolidation of propositions following the acquisition from AIG,” the insurer said.
“Sales in the discrete third quarter were flat as there was limited impact from this consolidation in Q3 2024.”
Doug Brown, CEO for insurance, wealth and retirement at Aviva, said: “In our health business, in-force premiums are up 14% year-on-year and are over £1bn, driven by strong new business volumes.
“In line with expectations, protection sales were down due to the consolidation of propositions following the acquisition from AIG, but we have seen an improved value of new business.”
NFU Mutual deal
Aviva has also agreed a new multi-year deal to distribute its individual protection insurance products through NFU Mutual.
The mutual originally had a distribution agreement with AIG Life but has continued this with Aviva following the transition during the acquisition last year.
The new agreement covers distribution of the full intermediated range of individual protection products including life insurance, whole of life insurance, critical illness, income protection, relevant life and business life insurance.
NFU Mutual will offer the insurance to their members and new customers through their agency network, face-to-face sales force and a smaller non-advised telephony team.
Aviva protection portfolio distribution director Daren Boys said: “We will be offering a full range of protection solutions to help the UK’s farming community protect their families and secure their financial futures.
“The new agreement marks further progress following the acquisition of the former AIG Life business.”
NFU Mutual head of financial services Graham Harvey added: “This agreement reflects our ongoing commitment to supporting the financial wellbeing of the UK’s rural and farming communities.”
