Aviva Group’s pre-tax profit fell from £2.4bn to £87m, primarily due to a £726m loss relating to Delta Lloyd and ‘adverse unrealised investment variances’.
UK life and pension sales grew by 10 per cent, up from £10.3bn to £11.3bn due to a strong performance in annuity sales which grew by 21 per cent.
Over 63,000 customers took out annuities with Aviva in 2011 with a total lump sum value of £2.6bn. This accounts for 25 per cent of the total UK annuities market.
Individual pension sales increased from £1.8bn to £2bn.
Andrew Moss, group chief executive, said: “We delivered a strong operating performance in 2011. Despite challenging market conditions we have beaten all our operating targets. We have made good strategic progress, focusing on markets where we will grow and earn higher returns.
“Looking to 2012, we have increased our operating targets underlining our confidence in Aviva’s continued success.”
He said the firm was well placed to take advantage of the opportunities of RDR at the end of the year and auto-enrolment.