The results just keep coming in the insurance sector – and Aviva has today revealed that its first half 2017 performance is “positive”.
For the fourth year in a row, the UK-based insurance giant has been able to grow its operating profit – up 11% as a result of strong business performance worldwide. As a result, it has been able to increase its interim dividend per share by 13% - up to 8.4 UK pence.
“We are getting the basics right. Serving customers well, keeping a tight control on costs and investing in our businesses,” said Aviva group CEO Mark Wilson.
So what about those numbers?
The firm’s operating profit climbed from £1,325 million (approximately NZ$2,369 million) during the first half of 2016 to £1,465 million (NZ$2,620 million) during the first half this time around. Its operating EPS was also up by 15%, while its general insurance net written premiums increased by 11% to stand at £4,688 million (NZ$8,384 million). Overall, new business value climbed by 27% and its general insurance combined operating ratio improved from 95.7% to 94.5%.
Focusing in on some of its key financial metrics, its performance on home turf was particularly pleasing for the firm as its UK and Ireland general insurance and health business improved by 17% to reach £259 million while its combined operating ratio in the UK fell from 93.8% to 92.5% and the company has announced a 10-year extension of its partnership with HSBC.
Perhaps the biggest disappointment for the firm, however, was in Canada – where its combined operating ratio climbed from 95.9% to 98.9% and general insurance operating profit was £71 million, compared to £88 million a year earlier.
“This was a disappointing result as continued adverse weather experience and unfavourable prior year development more than offset favourable foreign exchange movements, and the benefit of a six month contribution from the RBCI business acquired on July 01, 2016,” the company wrote.
Elsewhere, its European insurance business grew operating profit by 9%, while its Asian insurance business remained broadly stable at £115 million compared to £112 million in the same period one year earlier.
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