Aviva 9-Month New Business +25%; Maintaining Momentum

By Ian Walker

LONDON--Aviva PLC (AV.LN) Thursday reported a 25% rise in new business in the first nine months of the year, the eleventh consecutive quarter of growth, and said it is maintaining the momentum of the group's transformation.

The world's sixth-largest insurance company measured by net premium income said the acquisition of Friends Life is everything it expected it to be. The company has achieved 91 million pounds ($139.53 million) of savings against its target of GBP225 million.

"At the same time our U.K. Life business continues to grow and our customers are responding positively to the full range of pensions freedoms we offer," the company said.

Total new business rose to GBP823 million for the nine months ended Sept. 30, compared with GBP685 million in the same period a year earlier. In the U.K., it rose 36% to GBP404 million.

Aviva, which has around 34 million customers across 16 countries, added that its economic capital surplus--a measure of financial stability--slipped to GBP10.1 billion, from GBP10.8 billion at June 30, which it blamed on recent market volatility. However, its net asset value rose 2% to 387 pence a share, from 380 pence at June 30, 2014.

In June, Aviva completed its GBP5.6 billion purchase of Friends Life Group Ltd., creating the U.K.'s largest insurance, savings and asset-management company.

Aviva has also been selling off businesses as part of its strategy to focus on markets where it has scale or a sustainable competitive advantage to maximize return on capital. It has sold its 47% stake in South Korean business Woori Aviva Life Insurance and U.S. equity manager River Road Asset Management LLC, both for undisclosed sums.

The firm has also restructured its Italian businesses in deals with UBI Banca and UniCredit SpA.

Shares closed Wednesday at 479 pence and are currently down over 7% over the past 12 months.

-Write to Ian Walker at [e-mail]; @IanWalk40289749

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(END) Dow Jones Newswires

October 29, 2015 03:53 ET (07:53 GMT)

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