IFAs will help Aviva ‘knock L&G off its perch’
Aviva has announced plans to achieve the top place for marketshare in the UK life insurance space in 2012 after its UK life and pension profits increased by 8 per cent to £920m.
David Barral, chief executive for Aviva UK Life, said he is confident the firm will knock current leader L&G off the top spot, by growing its market share to 16 per cent, largely through intermediaries.
Aviva said it has 15.5 per cent of the market, which is up from 12 per cent three years ago.
He said: “We are hoping to knock L&G off the top spot in the UK life insurance market by the end of the year.
“We have been growing our market share by creating simplified products that IFAs can purchase online. By working more efficiently with advisers we have been able to create a strong brand and good service.”
This comes after the latest results for Aviva showed its operating profit from continuing operations grew 14 per cent from £2bn to £2.3bn year on year.
The results also showed that net written premiums for operations in the UK rose to £4.9bn from £4.5bn for the previous year, although operating profit for the same sector fell to £552m from £579m over the same period.
The results statement said: “Aviva’s underwriting excellence drove profitable growth in insurance, with general insurance and health net written premiums up 8 per cent to £9.2bn.”
Despite the positive figures, it reported its total operating profit dropped from £2.6bn to £2.5bn, while profit after tax plummeted 97 per cent to just £60m.
Andrew Moss, group chief executive, said he is confident about the outlook for 2012. He said: “We delivered a strong operating performance in 2011. Despite challenging market conditions we have beaten all our operating targets. We have made good strategic progress, focusing on markets where we will grow and earn higher returns.
“Aviva continues to perform well, even in tough times. We made great progress in the UK, growing profits and market share and we increased operating profits in Europe.
“Looking to 2012, we have increased our operating targets underlining our confidence in Aviva’s continued success.”
James Carter, IFA for London-based Independent James, said: “We have noticed recently that Aviva has been competitive with price in many areas, particularly its income protection proposition and the company does have good products.
“We think that Aviva could achieve its aim of being number one intermediary provider.”