Aviva sales climb as savers revive from recession

A revival in the savings culture in the UK and Europe as recession recedes in consumers' minds helped insurance giant Aviva to its second consecutive quarter of growth in the first three months of the year.

Total long-term savings sales, which includes pensions and life policies, rose 1% year on year to £10.1 billion but were 16% up on the final quarter of 2009.

Chief executive Andrew Moss called it "an encouraging start to the year" and said it "bodes well for the rest of the year".

Today it said it had agreed with trustees of the pension fund to inject £365 million of extra cash in the scheme to reduce its deficit. Last month it announced the closure of its final salary pension scheme to 7,600 members of staff.

UK life sales were flat year-on-year but up 14% on the fourth quarter as Aviva benefited with rivals from an increase in the minimum retirement age that has boosted volumes across the sector.

American sales were down 48% year-on-year, hit by Aviva's focus on profit which forced it to slow the pace of annuity sales.

Aviva also said it had shareholder exposure to the sovereign debt of Greece, Spain and Portugal totalling £900 million at the end of March, with Greece alone accounting for £150 million.