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Aviva Australia new business up, inflows down

Aviva Australia has reported increased new business in the second quarter, despite a 49% first-half dip in net fund inflows.

Second-quarter net inflows for Aviva’s business super and retail platform were up 5% to $381 million. But half-year net flows slumped from $1.47 billion in the prior corresponding period to $740 million this year.

Despite that result, Aviva Australia CEO Allan Griffiths says he is delighted with the increase in new business recorded amid tough economic conditions.

British parent Aviva has meanwhile reported a net loss of £94 million ($197 million) during the first half due to declining asset values, against profit of £807 million ($1.7 billion) in the first half of 2007.

Company executives took heart in Aviva’s strong operating profit, sound balance sheet and solid capital position.