Aviva’s retirement sales increased by 33 per cent in 2024 to £9.4bn, its full-year results have revealed.

Aviva said this was driven by an increase in bulk purchase annuity (BPA) sales, which rose by 42 per cent over the year from £5.5bn in 2023 to £7.8bn in 2024.

This was achieved across 61 deals, making it Aviva’s best year to date for sales, including a £1.7bn buy-in with National Grid in the final quarter of 2024.   

In addition to this, the cost of acquiring new business was lower than expected and below the usual 3-4 per cent range, due to higher investment in gilts.

For individual annuities, sales were up by 15 per cent in 2024, driven by an increased demand in a higher-rate environment.

Equity release sales were 38 per cent lower reflecting a reduction in the market size in the higher interest rate environment.

Meanwhile, operating profit increased by 14 per cent to £746m from portfolio growth & higher investment returns.

Supplemental security income rose by 28 per cent to £763m, while its new business margin was 3.2 per cent due to strong trading performance.

Commenting on the results, Aviva Insurance, Wealth & Retirement CEO, Doug Brown, said the business is going “from strength to strength”, with a “fantastic” set of results for 2024.

“We continued to grow across insurance, wealth, and retirement and I was delighted to see our strategy gain even more momentum over the course of the year,” he continued.

“Overall sales grew 33 per cent to £9.4bn in our retirement business, driven by record BPA volumes and strong customer demand for individual annuities in the higher interest rate environment. 

“We are delivering consistent year-on-year growth and I am confident in our ambition to be the UK’s go-to customer brand for all their insurance, wealth and retirement needs.”

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