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Aviva's management statement for the first quarter of 2008, released today (25 April), reports that investments have fallen from £657m to £436m over the last year, with a sharp decline of 14 per cent since December 2007.

Aviva blamed outflows from its commercial property fund and market trends, saying consumers preferred more long-term investments.

Bonds were also hit, with sales dropping by 15 per cent. However, this was offset by growth of 30 per cent in with-profit bonds and 19 per cent in offshore bonds.

Pensions were also hit, falling 3 per cent in 12 months, although Aviva remained optimistic that this would change as its Sipp-lite proposition grows throughout 2008.

Protection sales grew 10 per cent and long-term savings remained stable, growing 2 per cent in the first quarter to reach £9.4bn.

Asia showed the best returns, growing sales by 50 per cent to £373m in the three month period from 31 December.

Aviva remained positive, saying overall sales in investments and pensions were expected to recover in the second half of the year, with today's figures remaining "in line with market estimates".

Andrew Moss, group chief executive for Aviva, said: "Overall, we are making good progress towards the group’s medium-term performance targets and the cost savings that we announced last year.

"While we expect some further short-term uncertainty in some of our markets, the strength of our balance sheet and the prudent management actions we took last year will help us ride out economic turbulence.

"Aviva’s diversification across geographies, distribution channels and products will continue to prove a great strength in current market conditions."