Aviva celebrates more growth

Aviva Chief Executive Andrew Moss hailed an encouraging start to 2010 after a second consecutive quarter of growth.

The insurer reported global sales of £12.6bn in the first three months of the year, up 16pc on the previous quarter but down 1pc on the first three months of 2009.

As well as 16pc growth in the company's long-term savings operations (which includes life, pensions and investments services) to £10.2bn, the Norwich-based general insurance division also marked a return to growth.

Following the launch of a UK marketing campaign using the slogan Get the Aviva Deal, new insurance and health premiums were up 16pc globally to £2.5bn, driven by strong performances in the UK and Europe. Andrew Moss, Chief Executive

Mr Moss said: “This is an encouraging start to the year.

“Europe and the UK are the primary engines for Aviva's growth today, accounting for 85pc of our long-term savings sales in the first quarter.

“Sales have recovered and we've seen strong performances across our portfolio of life, general insurance and asset management businesses, compared to the previous quarter.

“Our capital position remains strong and this second quarter of growth bodes well for the rest of the year, even though there is still a degree of economic uncertainty in a number of markets.”

The positive results follow an announcement last month of proposals to close the company's final salary pension scheme, a move criticised by union Unite as a “betrayal” of staff.

But Mr Moss said the planned changes “should provide a welcome degree of certainty on funding for all our stakeholders”.

Aviva, the world's fifth largest insurer, is Norwich's biggest employer with about 6,000 staff based in the city. A year ago it rebranded itself and lost the famous Norwich Union name.

In March the company reported a £2.2bn turnaround in fortunes in 2009, with profits of £1.3bn compared to losses of £885m the previous year.