Aviva's UK protection new business dropped 10% in the first quarter of the year, dragged down by poor group sales.
Sales were £231m in Q1, down from £258m the previous quarter, and 6% year on year from £245m in Q1 09. Aviva say this is despite record weekly core protection applications driven by its Simplified Life offering through IFAs and partnerships with Barclays and the Post Office.
However, Aviva's total UK life and pensions business was up 14% on previous quarterly volumes, helped by strong annuity sales.
Sales rose to £2,557m, up from £2,250m in Q4 09, and also slightly up year on year on Q1 09 sales of £2,505m.
Annuity sales rose 35% on the previous quarter to £877m, up from £648m in Q4 09, and an 84% increase from £475m in Q1 09. This was largely due to its bulk purchase annuity offering with sales of £344m, up from just £28m in Q4 09.
Meanwhile, sales of individual annuities were £533m, down from £620m in Q4 last year, which Aviva says reflects the seasonal market fall in application levels during December and January.
Aviva's pension sales were 10% higher at £941m, compared to £859m in the fourth quarter of 2009.
Collective investment sales increased to £426m in the first three months of the year, up from £418m the previous quarter, and £175m in Q1 09.
UK life chief executive Toby Strauss says: "We believe the IFA sector will continue to be resilient.
"Next year we will add group pensions to our evolving adviser charging model, once we have received the final detailed rules, follow by bonds in good time for 2012."
Group chief executive Andrew Moss also reiterated the group's commitment to the UK market: "Europe and the UK are the primary engines for Aviva's growth today, accounting for 85% of our long-term savings sales in the first quarter.
"Sales have recovered and we have seen strong performances across our portfolio."
