Aviva to stay away from acquisitions in '08

PARIS (Reuters) - The country's largest insurer Aviva (AV.L) will stay away from acquisitions this year as it waits for more visibility on financial markets, its chief executive said in a newspaper interview.

Andrew Moss also told French business daily La Tribune Aviva's balance sheet was "very solid" with a limited exposure to Lehman Brothers (LEHMQ.PK) and AIG (AIG.N) and it was sticking to its target of doubling earnings per share by 2012.

Aviva's exposure to Lehman Brothers accounted for less than 1 percent of the 300 billion pounds of assets that Aviva managed, while exposure to AIG and its units came close to 100 million pounds, a level Moss described as "very low."

Asked if Aviva was planning to use the current crisis to expand, he said: "In 2008 we will stay away from any deals while waiting to see how the situation evolves. We prefer to keep our funds."

"Right now to make an acquisition and raise funds, you need to demonstrate to the markets that it's truly a very good deal," he added.

(Reporting by Dominique Vidalon; Editing by David Holmes)