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Aviva H1 operating profit increases 13%

IBR Staff Writer Published 05 August 2016

Insurance giant Aviva has reported an operating profit of £1.32bn for the first half of this year, compared to £1.17bn for the same period last year.

Operating profit increased 13% despite higher weather claims in general insurance, lower bulk purchase annuity sales in UK Life and new government levies.

Following this, the global insurance company based in London has hiked its dividend by 10% from 6.75p to 7.42p.

Aviva Group CEO Mark Wilson said: "We are delivering consistent, stable and predictable growth despite challenging market conditions.

“Our UK businesses delivered encouraging results. We are growing in the UK, we are investing in the UK. We like the UK. And we are also benefitting from Aviva’s diversity, with 42% of our earnings1 coming from outside of the UK.”

Life business made a profit of £1.22bn which is an increase of 20% compared to its 2015 profit. Fund management division saw its profits increase by 48% to £49m.

However, the company's general insurance and health unit recorded a 21% decline in profits to £334m.

In UK and Ireland life, operating profit increased 25% to £711m. Operating profit from our UK and Ireland general insurance and health business declined 3% to £231m.

The company's European insurance businesses delivered operating profit of £430m. Operating profit from Asian insurance businesses increased to £112m.


Image: Aviva has reported a 13% increase in its profits. Photo: Couresy of Aviva.