Aviva Plc has reported growth of 25 per cent in sales for the whole year 2007, worth Â£38,583 million, thanks to strong growth in North America and Asia. The group has also said it is positive of sales and profit growth in 2008.
The group's total UK sales went up by six per cent. North American and Asia Pacific sales increased by 39 per cent to Â£3,602 million and 60 per cent to Â£4,089 million respectively. Sales in Europe increased 19% to Â£16,486 million.
The group said that the cost of the floods in the UK last summer went up by Â£75 million to Â£475 million and took their combined operating ratio (COR) - cost and claims as a percentage of premiums - from 95 to 100 per cent.
Worldwide the group's sales of life and pensions increased by 22 per cent to Â£31,600 million whilst investment sales went up 41 per cent to Â£6,983 million.
Andrew Moss, Chief Executive, said, The costs of [the floods]â€¦ will be higher than we first estimated and, as expected, the floods have had an impact on the group's full year COR. I'm pleased to say that without these exceptional claims we would have achieved a COR of 95%, some 3% better than our 'meet or beat' target.
Moss also said he was positive about Aviva's prospects for 2008, Aviva has a broad portfolio of products across the world. While our markets will be affected by the current economic uncertainty, I believe we will continue to grow both new business sales and profit in 2008 in line with our stated targets.