British insurer Aviva reported weaker 2009 life sales, held back by tough economic conditions in the UK, and said its general insurance arm had been hit by hefty weather claims in Ireland and the UK in the final quarter.
Aviva had total 2009 life and pensions sales of £32 billion sterling, down 12% from £36.24 billion the previous year. Analysts had expected sales of £31.3 billion.
Britain's second-biggest insurer said its general insurance profits for 2009 would be dented by £100m of claims for damage from storms in Ireland and the UK during the final three months of the year. The Irish claims accounted for about £80m of this figure.
The company, which was formerly known as Hibernian here, said that Irish retail sales fell by 2% to £636m, an 11% decrease on a local currency basis.
'This reflects the poor economic climate, which impacted the Irish life insurance industry as a whole and an increasingly competitive marketplace,' the company said.
Aviva had a capital surplus of £4.5 billion at the end of 2009, compared with £2 billion a year earlier, the company added.
The company said its life sales rose 21% in the final quarter of 2009, and added that it was well-placed to benefit from an economic upturn in its major markets.
'We start 2010 in a strong position,' chief executive Andrew Moss said.
