Aviva 1st Half Operating Profit +11%; Raises Dividend

Xavier Trudeau
Août 3, 2017

In half year results published this morning Aviva said it recorded £3 billion of net inflows onto the platform in the six months to 30 June.

As a result, Aviva is increasing its interim dividend by 13% to 8.4p.

"We are getting the basics right".

Although Aviva did not disclose how much the platform businesses lost, it said that a £25 million non-insurance loss in its United Kingdom and Ireland life business "primarily relates" to the platforms.

So what about those numbers?

Analysts in a company-supplied poll forecast operating profit of 1.45 billion pounds.

In addition its general insurance and health division improved operating profit to £417m from £334m, according to figures reported by the insurer.

The present value of new life insurance business premiums is €574m up from €434m in 2016, however underlying profit in this arm of the business is down more than 50pc to €7m from €14.6m year on year.

Focusing in on some of its key financial metrics, its performance on home turf was particularly pleasing for the firm as its United Kingdom and Ireland general insurance and health business improved by 17% to reach £259 million while its combined operating ratio in the United Kingdom fell from 93.8% to 92.5% and the company has announced a 10-year extension of its partnership with HSBC. A combined ratio below 100 per cent indicates that an insurer is making an insurance underwriting profit.

Private Motor delivered a current year combined operating ratio of 95%, witht Aviva saying this segment of the market remains a challenging part of its business.

Aviva Ireland Chief Executive Officer John Quinlan said there is "significant opportunity for growth in both our life and general insurance businesses in this market. Serving customers well, keeping a tight control on costs and investing in our businesses".

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