Aviva sales increased 5% during first quarter

Worldwide sales for Aviva PLC rose to 10.3 billion British pounds ($15.1 billion) in the first quarter, up 5% from a year earlier, buoyed by sales of life insurance and pensions. Sales of life insurance and pensions around the world hit 9.57 billion pounds ($14 billion), up 11% from a year earlier. Total sales in North America also climbed during the first quarter, jumping to 1.93 billion pounds ($2.83 billion), up 84% from the first quarter of 2008. Annuity sales led the surge, climbing to $1.25 billion for the quarter, up 152% from last year’s 694 million pounds. The carrier has been trying to stanch new annuity sales — which place pressure on a company’s capital — by terminating relationships with some of its producers and independent marketing organizations, as well as by raising prices on the products and lowering commissions for brokers. Still, the London-based company is pushing sales of its life insurance products. Sales of life insurance hit 177 million pounds ($259 million) in the first quarter, up from 132 million pounds ($261 million) a year earlier. To encourage more life sales, the company signed on five brokerage general agencies in the quarter. Aviva said that life insurance sales had slowed because financially pressed consumers are viewing it as a discretionary purchase.