UK - A sharp rise in life expectancy for men has forced insurance giant Aviva to boost its annuitant mortality reserves by £123m.
Research by the Institute and Faculty of Actuaries’ continuous mortality investigation board shows that the life expectancy of men born between 1920-1930 is increasing faster than any other generation.
Aviva group chief executive Richard Harvey said: “Current experience shows profits against the existing reserve basis, but we have taken the prudent decision to strengthen our base mortality assumptions to reflect the study.”
Aviva’s UK-based fund management operations posted a £12m loss for the year. Its institutional business, Morley Fund Management, posted profits of £4m for 2002 – down 84% compared to the previous year – while its retail operations recorded a loss of £16m.
Aviva said its fund management divisions suffered due to the past 18 months of falling markets.
Despite this, the firm’s new business inflows for all its fund management divisions managed to offset the falls in its total assets under management.
For 2002, Aviva’s assets under management remained relatively stable at £208bn, compared to the £209bn posted the previous year.
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