Analysts are expecting Aviva to announce that sales have fallen 2% when it reports full year figures for 2003 tomorrow. Although it is expected that general insurance sales and profitability have held up well.
In August, Aviva announced that its profits slipped by 13% in the first half to £828m before tax on an achieved profits basis from £955m in the same period last year. The fall was a result of falling investment returns, Aviva said. On a modified statutory basis, Aviva's operating profit before tax was £638m from £733m last year.
The group's combined ratio in the first half was steady at 101%, the same as last year's comparative period.
The general insurance operation benefited from firm prices and a generally benign loss environment. But it produced an operating profit 15% lower than before in the first half of 2003, at £387m against £456m last year, calculated on an achieved profit basis.
The combined ratio for general insurance in the UK, under the Norwich Union brand, improved by two percentage points to 99% from 101% in the first half of 2002.
Weather-related claims were lower than expected, producing £30m of unexpected profits.
