Aviva numbers indicate return to profitability

Aviva, the insurer known until recently as Norwich Union, gave evidence today that the sector could be in for a bumper year.

With City sentiment on the industry starting to turn positive, Aviva's numbers for the fourth quarter suggest that the conditions are in place for a decent rise in profits.

Andrew Moss, the chief executive whose private life became public knowledge last year after he left his wife for a member of staff, says sales are up across all regions.

"We saw the first signs of improved appetite to save among our customers," he said. "The question is whether the third quarter of 2009 will prove to be the bottom of the cycle. My guts tell me there is a strong possibility that could be the case."

Life and pension sales jumped 21% in the last quarter to £7.9 billion. For the whole year they fell 12% to £32 billion, a sign of how hard even the largest players found the last 12 months.
Aviva has cut back on capital-intensive sales of bulk annuities in the UK, while gaining market share in other areas.

"There are still profitable opportunities here in the UK but we are deciding where we want to write business and where we do not," said Moss.

Severe weather and flooding at the end of last year cost Aviva £100 million in claims.