Aviva UK profits up 21%

Aviva has boosted its UK profits by 21%, led by higher sales in the life and pensions business.

Across the group as a whole, IFRS operating profit was up 26% to £2.55bn, compared to £2.02bn in 2009. Profit before tax rose 35% to £2.44bn, up from £1.81bn the year before.

UK operating profits rose to £1.41bn in 2010, up from £1.16bn in 2009, driven by Aviva's UK life and pension business which saw sales rise 16% to £10.2bn, and profits grow 26% to £850m.

Total long-term savings were up 19% to £11.8bn, the company reports.

Aviva says it grew its UK market share for the third consecutive quarter, with a
strong performance in annuities and core life protection.

The company says it is "well-placed" for the RDR in 2013 and is supporting IFAs as they make the transition.

It says 8,600 IFAs are going through its Financial Adviser Academy and it is
already offering RDR-compliant products with about 50% of new individual personal pensions written on this basis.

Only about 15% of its new business contribution is impacted by the scope of the RDR it says, due to the growth of its "RDR resilient" bancassurance partnerships and other non-IFA distribution channels.

However, profits for asset management arm Aviva Investors were down to £100m compared to £115m in 2009, which the company says is due to higher than expected redemptions and ongoing investment in the business.

Aviva's total dividend per share was up 6% to 25.5p.