Insurance giant Aviva Plc today reported 9% drop in total sales to 11.4 billion pounds (about $18.6 billion) in the January-March quarter hurt by poor performance of life insurance segment.
However, the company said its business is expected to thrive this year.
Aviva's total sales declined to 11.4 billion pounds in the first quarter ended March 31, 2011 from 12.64 billion pounds an year ago, the UK-based firm said in a statement.
The company, which has significant presence in India, said its sales volume fell in the country to 36 million pounds in the quarter under review from 37 million pounds in the year-ago period.
"Our strategic response to local regulatory changes was to alter our product mix, selling fewer investment-linked products and a greater proportion of traditional insurance products. This enabled us to maintain the sales volume at 36 million pounds," the company said.
Overall, General insurance and health net written premiums were 2.6 billion pounds compared with 2.4 billion pounds in the prior-year quarter, an increase of 9%.
The company said general insurance's strong premium growth was due to pricing actions, along with with improved efficiency and improving market conditions.
In life insurance, total long-term savings sales were 8.7 billion pounds, a 14% decline from the 10.17 billion pounds. It was pulled by lower sales volumes in Europe and the US.
"We have made a good start to the year. Our general insurance performance is a real highlight; sales are up strongly and profitability is good. Life sales are down on 2010, primarily because we have driven new business returns higher by changing our product mix to focus on more profitable business," Aviva Group CEO Andrew Moss said.
Moss further said, "I am confident that Aviva will continue to thrive in 2011".
In Asia Pacific, the company delivered 14% growth in total sales to 597 million pounds. Within this, life and pensions sales increased 4% to 426 million pounds and investment sales were higher at 141 million pounds.
General insurance and health net written premiums rose to 30 million pounds.