Aviva sees profit rise

Michael Lloyd

August 9, 2019

Aviva saw its overall profit and its operating profit for its general insurance and health business rise in H1.

Its operating profit for general insurance and health was £391m in the first six months of June, up by 29% from the £302m in the first six months of 2018.

The firm’s operating profit was up 1% to £1.448bn from the £1.438bn in H1 2018. Its International Reporting Standards (IFRS) profit after tax was £1.180bn, an increase from £376m last year.

Maurice Tulloch, chief executive officer, said: “Aviva has strong foundations to build upon but there is much to do to improve our performance.

“Our performance is mixed, with operating earnings per share up 2%.

“We have delivered strong general insurance results with a combined ratio of 95.9%. In life insurance and asset management, operating profits declined due to challenging market conditions and the absence of a longevity reserve release.”

Aviva has moved to separate management structures for UK life and UK general insurance and has also completed the alignment of its UK digital business under UK general insurance.

Tulloch added: “In June we announced a plan to improve Aviva’s performance and deliver an excellent experience for our customers. We have made a quick start; separating management of our life and general insurance businesses in the UK and bringing together UK digital and UK general insurance.

“Our financial position remains strong with a capital surplus of £11.8bn and £2.3bn of cash at group.

“Maintaining such a healthy capital surplus is important as we continue to reduce our debt levels and safely navigate uncertain market conditions. Aviva is ready and resilient.

“I am working with the board to refresh Aviva’s strategy and we have decided to review the strategic options for our Asian businesses. Aviva’s businesses in Asia have excellent growth and earnings potential and we are considering a range of options to help these businesses reach their potential.

“I am confident that our combination of excellent insurance skills, a strong balance sheet and world class distribution and partners provide a strong foundation for Aviva’s future success.”

Sign up to our daily email