Insurer Aviva reported a 14 per cent drop in life insurance sales during the first quarter as it withdrew from less profitable segments of the market.

Aviva had long term savings sales of £8.8 billion in the first three months of the year, it said.

The decrease came as Aviva walked away from less profitable business in the United States, and also reflected weaker sales in Italy, where tax concessions last year drove a one-off surge in new business.

Aviva had warned last month that life sales would be down by between 10 and 15 per cent.

The weaker life insurance sales were counterbalanced by a better performance in general insurance, where net written premiums rose 14 per cent to £2.7 billion.

Reuters