International insurance giant Aviva – which is embroiled in speculation about a possible withdrawal from the Australian market – has recorded a 5% increase in first-quarter sales, driven in part by 15% growth in bancassurance revenue.

An interim statement from the London-based insurer reveals first-quarter sales revenue of £10.3 billion ($21 billion), including an 11% uplift in life and pensions income compared to the same period last year.

It also reported lower demand in Australia, where the parent company is understood to be courting potential buyers for the local operation in a deal estimated to be worth about $1 billion.

Aviva reported “satisfactory” performance from its general insurance operations in line with a targeted 98% combined operating ratio.

CEO Andrew Moss says he’s pleased to see bancassurance sales rebound “as banks refocus on insurance as an important contributor to their earnings”.

Local life and pension sales slumped 24% due to the closure of significant capital protection business while lower superannuation and group risk sales were attributed to “less fluidity in the employment market”.

Investment sales in the wider Asia Pacific region slumped 46% lower to £269 million ($548 million).