UK-listed insurer Aviva has decided to stop purchasing large closed pension funds after encountering a tough challenge from its rivals in the sector. A sale of its bulk annuities business servicing this end of the market cannot be ruled out, although this is not Aviva’s priority.

In a broad review of its overall business, Aviva has also warned that its investment arm needs to generate more third-party sales. At present, external mandates comprise 19% of Aviva Investors funds totalling £262bn, with the rest represented by captive business.