Aviva posted fairness launch gross sales that tumbled 54% to £114m within the first half of the 12 months, “attributable to decrease ranges of market exercise”.
The monetary providers group added its later life enterprise turned in a revenue of £37m, down 12% on a 12 months in the past, in a inventory market assertion.
It added that its fairness launch operation needed to “keep pricing self-discipline to make sure a enough funding return to assist our annuity companies”.
Retirement unit income – which holds the group’s later life in addition to particular person and firm annuities enterprise — fell 6% to £3bn, “as sturdy development in particular person annuities was offset by decrease fairness launch gross sales” and a slight discount in firm annuities volumes.
Final 12 months the fairness launch market suffered a poor 2023, with simply 26,119 agreed new plans, down 47% from 2022, in line with the Fairness Launch Council, which nonetheless operated in opposition to a backdrop of the Financial institution of England lifting rates of interest 14 instances between 0.1% in December 2021 to five.25% final August.
Aviva stated its securitised mortgage loans and fairness launch portfolio stands at £9.8bn and is usually internally securitised with a median loan-to-value of 27.9%.
The enterprise says it’s the UK’s largest supplier of particular person annuities, manages the nation’s largest guide of fairness launch mortgages and is among the largest suppliers of bulk firm annuities.
General, the group reported an working revenue forward of expectations at £875m for the primary half of 2024, up 14% on the identical interval a 12 months earlier.
Its outcomes have been pushed by basic insurance coverage premiums, which jumped 15% to £6bn throughout the entire of the group.
Group chief govt Amanda Blanc stated: “We’re the one UK insurer which might take care of prospects’ whole insurance coverage, wealth and retirement wants, and that is paying off.
“Now we have 270,000 extra prospects this 12 months and 4.9 million UK prospects have a couple of coverage with us.”
The agency additionally operates throughout Canada and Eire.
