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Aviva profits soar as it runs into governance row

Fund management arm Morley agrees hedge fund tie-up

The UK insurer Aviva posted a record quarter for new long-term savings business today as it was dragged into a legal row by its Netherlands subsidiary Delta Lloyd which alleges broken promises over corporate governance issues.

Aviva, which launched an unsuccessful £17bn (€24bn) for UK rival Prudential last month, said sales from life and pensions new business rose 20% to £6.79bn in the first quarter this year, well ahead of the best market estimates of £6.24bn.

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