Strong final quarter boosts Norwich Union

Norwich Union owner Aviva has given an upbeat assessment on prospects for 2004 after reporting a steady sales performance over…

Norwich Union owner Aviva has given an upbeat assessment on prospects for 2004 after reporting a steady sales performance over the last year.

The group said the final three months of 2003 had been its strongest quarter of the year, leaving life and pension sales for the 12 months to December 31st little changed on a year earlier at £2.38 billion sterling.

Chief executive Richard Harvey said: "The prospects for growth in 2004 are encouraging, with evidence that investors are regaining confidence as equity markets recover."

The British performance based on annual premium equivalent sales - the standard industry measure to iron out volatility - was 13 per cent lower at £1.07 billion.

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However, Aviva said Norwich Union had still grown its market share to more than 12 per cent in the third quarter and reclaimed a market leading position.

It added that its showing over the last three months had extended the stable sales trend seen in the British business over the past five quarters.

The renewed Norwich Union confidence has been echoed by investors in recent days after shares in the insurance sector rose sharply on the back of positive notes from City analysts.