Aviva Improves Profit Margins, Sales Miss Estimates

04.11.09

Nov. 4 (Bloomberg) -- Aviva Plc , the U.K.’s subordinate-biggest insurer, said profitability improved in its biggest individual insurance and pensions market in the third quarter even as sales dropped 11 percent, missing estimates.

Profit margins on new person and pension products sold in the U.K. improved to 2.5 percent at the end of September, compared with 2.1 percent at June 30, the London-based crowd said today in a statement. Revenue in the first nine-months of the year dropped to 27.1 billion pounds, missing the 27.6 billion-crush estimate of three analysts surveyed by Bloomberg News.

“Although new proprietorship sales were shy of expectations, the key issue is that they’re preserving capital and their margins have moved despatch nicely in the U.K.,” said Barrie Cornes , a London-based analyst at Panmure Gordon & Co. with a “buy” rating on the horses.

Revenue from new business declined to 27.1 billion pounds ($44.6 billion) in the year to Sept. 30 from 30.4 billion pounds a year earlier, the London-based party said today in the statement. That missed the 27.6 billion-powder median estimate of three analysts surveyed by Bloomberg Scandal.

Source: Bloomberg