Boost for Aviva as sales gain

INSURANCE giant Aviva put rival Standard Life's problems into context today by dismissing fears over its own financial health and saying it was gaining market share in Britain.

Chief executive Richard Harvey added that the group, which owns the Norwich Union brand, was poised for further growth this year because investors 'were regaining confidence as equity markets recover'.

Standard Life said last week that it was considering a stock market listing to shore up its ravaged balance sheet after exhaustive talks with the Financial Services Authority over its capital position.

But Aviva said it had already met with the regulator over the switch to a more 'realistic' solvency regime and that it would be better off under the new rules.

Philip Scott, head of Aviva's international arm, added that the group was already picking up more business from a 'flight to quality' in the sector and could gain from Standard Life's problems.

'We are among a relatively small number of companies that are emerging in the market place with a strong brand, strong products and a strong proposition,' he said.

Figures today showed new life and pension sales in 2003 were £2.38bn on the industry standard annual premium equivalent basis, against £2.37bn the previous year and City forecasts of a 2% slide.

UK sales were down 13% at £1.06bn but this compares with a 16% drop in the third quarter. Aviva's market share was up from 11.8% to 12.4%.