AVIVA, the UK’s second-biggest insurer, will concentrate on the UK and Europe as its key growth markets over the next five years.

In its nine-month trading update to September 30 today, the group revealed that total UK sales jumped 16% to £12.28bn, while in Europe they improved 10% to £13bn.

Worldwide revenues for the group came in at £35.9bn, up 5%.

It said it is on track to generate £1.5bn of operational capital for 2010 and aims to make cost and efficiency savings of £400m by the end of 2012.

Life insurance and pension sales climbed to £25.6bn from £24.1bn a year ago, beating the £25.2bn average estimate of 14 analysts surveyed by the company, which employs 66 people at its motor insurance call centre in Liverpool’s Water Street.

Chief executive Andrew Moss said: “The third quarter of 2010 saw continued strong profitability and good sales growth from both our life and general insurance businesses.

“As we look to the next phase of our growth Aviva will sharpen its geographic focus and deepen its position in its key markets through its strengths in both life and general insurance.

“Our UK business is an excellent example of how this strategy is delivering value for our shareholders and customers.

“We are on track to deliver strong profitable growth and outstanding capital generation for the full year 2010.”

He said the group will extend its general insurance capabilities in Europe and grow its market-leading positions in the UK, Canada and Ireland.

“The UK and Europe represents the largest life and pensions market in the world, offering the greatest absolute growth over the next five years.”

Since a restructuring of the business began in 2007 the group said it has “fundamentally transformed through decisive management actions, despite the financial crisis”, to deliver £500m of cost savings, a year ahead of target, and cut its workforce by 19%.

In August Aviva rebuffed a £5bn approach by Liverpool insurer RSA for its general insurance business.