Net flows for Aviva’s wealth division dropped 15% year-on-year to £2.3bn for the first quarter of 2025 (Q1 2024: £2.7bn).

The provider attributed the drop in flows due to the outflow of assets of a large workplace scheme which had switched to another provider.

The net flows represented 5% of opening assets under management.

Aviva added that as at the end of April, net flows were £4bn, representing 6% of opening assets under management and ahead of the prior quarter (£3.5bn).

The provider reported its best sales figures within its platform business where it increased net flows by 52%.

In the quarterly trading update shared this morning, the provider said its wealth division is expected to see a strong growth momentum towards its ambition for £280m operating profit by 2027.

Amanda Blanc, group CEO of Aviva, said: “We continue to be very positive about the outlook for 2025. Our balance sheet is strong, we have a clear customer-focused strategy which we continue to deliver at pace and our market-leading businesses are growing well, especially in capital-light areas. We are increasingly confident about Aviva’s prospects and meeting our financial targets.”

Higher interest rates also drove growth in Aviva’s annuities business where individual annuities saw a 32% increase in sales in Q1.

The provider’s retirement arm reported sales of £1.8bn for the quarter (Q1 2024: £1.7bn), driven by the higher volumes in individual annuities and equity release.

Protection and health sales rose 19% to £126m (Q1 2024: £106m), following the completion of its acquisition from AIG last year. Aviva has an ambition to £100m operating profit for its health business by the end of 2026.