Aviva’s protection and health business posted a 6% growth in sales by value of new business (VNB) to £60m in the first quarter of the year up from £57m in the same period last year.
The group attributed the rise to higher volumes in individual protection and health with particularly “strong performance for individual protection in IFA channels” despite the shrinking market.
However it noted the figures were partly offset by increases in the yield curve adversely affecting the value of new business in protection.
Using the alternate annual premium equivalent (APE) measure, the insurer reported an 11% increase in sales to hit £102m in Q1 2023, up from £92m in the same period last year.
By this measure health business sales climbed to £33m – posting 25% growth on the previous year amid a “strong” performance with its corporate clients.
Individual protection sales rose 16% to £36m with March applications “significantly” ahead of the previous year, the insurer said.
However, group protection sales fell 5% to £33m, with lower new scheme sales largely offset by an increase in the value of existing scheme increments.
In the group’s Ireland Life business, value of new business increased to £11m from £7m a year earlier, which the group reported reflected improved margins on unit-linked business following the launch of a new proposition and improved volumes of higher margin protection business.
It added there was “strong” group protection performance offset by lower savings sales.
Doug Brown, CEO of UK & Ireland Life at Aviva, said: “We have had a strong overall trading performance in our UK life business in the first quarter, showing the benefit of the diversified nature of our business across wealth, retirement and insurance.
“Sales volumes are up for both individual and bulk purchase annuities. We have completed some significant bulk purchase annuity (BPA) deals already this year to date, including the Arcadia Group Pension Schemes and Thomas Cook Schemes.
“We have also seen strong growth in new business sales in workplace pensions and this momentum has continued into the second quarter. Overall wealth net flows however are lower due to subdued investment activity in our platform business.
“We have grown individual protection and health sales, with a strong performance for individual protection in IFA channels despite contractions in the mortgage market and the overall protection market.
“I am pleased that we continue to be resilient to the market conditions and are growing our UK life business, and I am confident about the outlook for this year.”
