News Column

Aviva Operating Profit Rises On Gains By Life Arm, Fund Management

August 6, 2014

Samuel Agini

LONDON (Alliance News) - Aviva PLC Thursday reported a rise in pretax operating profit from continuing operations as increases in its life business and from fund management more than offset a drop in general insurance and health.

Aviva increased its interim dividend by 4.5% to 5.85 pence from 5.60p.

In a statement, the FTSE 100 insurer said it made a GBP1.05 billion pretax operating profit in the six months ended June 30, compared with GBP1.01 billion in the corresponding period last year. Operating expenses from continuing operations fell to GBP1.40 billion, while integration and restructuring costs fell by just shy of three-quarters to GBP1.44 billion.

Value of new business increased to GBP453.0 million from GBP428.0 million, while cash remittances were up to GBP612.0 million from GBP573.0 million.

Aviva said that its intercompany loan balance, which it wants to reduce to GBP2.2 billion by the end of 2015, stands at GBP3.6 billion.

"The half year results show that momentum in Aviva's turnaround continues. All of our key metrics have improved, operating earnings per share are up 16%, and book value has increased 7%," Chief Executive Mark Wilson said in a statement.

"We have reduced our debt, decreased expenses and increased profit this is just good business. Aviva remains a work in progress, and these results are a step in the right direction," Wilson added.

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Source: Alliance News

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