Aviva well positioned for future growth after 'outstanding' first half
Aviva PLC on Thursday boosted its dividend by 10% as it hailed a strong first half, which saw strong trading across the business.
The London-based insurer said pretax profit surged 30% to £1.27 billion in the first six months of the year from £978 million a year prior.
The FTSE 100 listing said operating profit was 22% higher on-year at £1.07 billion from £875 million a year prior.
Gross written premiums were 4.7% higher at £6.29 billion from £6.01 billion.
In response, shares in Aviva climbed 3.7% to 683.67 pence each in London on Thursday morning.
Insurance, Wealth & Retirement sales rose 9% to £21.5 billion from £19.7 billion a year prior, while General Insurance premiums increased 7% to £6.29 billion from £6.01 billion.
The solvency II ratio of 206% improved from 203% a year ago and remains ‘strong and resilient’, Aviva said.
Chief Executive Officer Amanda Blanc said the performance was ‘outstanding’, ‘extending our track record of delivery’.
Blanc added: ‘Trading has been very good right across Aviva. We are the number one UK wealth player, with more than £200 billion of assets, and net flows are up 16%.’
She noted general insurance operations now represent half of business unit operating profit.
The insurer lifted its interim dividend by 10% to 13.1 pence per share from 11.9p.
Aviva said it is confident about meeting targets outlined in its 2023 results, which include achieving annual operating profit of £2 billion by 2026.
The company expects some rate softening in the second half in General Insurance but sees strong growth continuing in Wealth Management, alongside further growth in Health.
Blanc said Aviva is ‘very well positioned to accelerate growth in the capital-light areas of wealth, health and general insurance, and deliver more and more for our shareholders.’
Aviva completed the £3.7 billion acquisition of car and home insurer Direct Line Insurance Group last month.
The integration is underway, and Aviva expects to ‘give further colour on Direct Line’ at an analyst and investor event in November.
Aviva said the deal opens up significant opportunities for further growth in General Insurance.
Blanc said: ‘We are confident the deal will contribute significantly to Aviva‘s future growth.’
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