The Courier & Advertiser (Fife Edition)
Aviva ‘delivering’ as first-half profits rise
General underwriting arm gives boost to group which remains one of Perth’s largest private sector employers
Aviva has reported a steep rise in firsthalf profits after it was boosted by its general insurance division.
The insurer, which has more than 1,000 staff based at its Pitheavlis site at Perth, said operating profit grew 11% to £1.46 billion in the first six months of the year.
The group’s general insurance and health profits increased 25% to £417 million, aided by the acquisition of RBC Insurance in Canada last year, as well as foreign exchange benefits.
Net written premiums in the general insurance business lifted by 11% to £4.68bn, while the value of new business rose 27% to £596m.
Life insurance operating profit grew 8% to £1.3bn after it saw double-digit growth in long-term savings, protection and annuities and equity release.
“Aviva is delivering,” group chief executive Mark Wilson said.
“For the fourth year in a row we have grown operating profit, up 11%, reflecting positive performances across Aviva’s businesses worldwide.
The firm declared an interim dividend of 8.4 pence, a 13% rise on the prior year.
Shares in the group edged forward in early trading following the update.
“The benefits of our geographic and product diversity are clear and Aviva has numerous sources of growth,” Mr Wilson continued.
“In the first half of 2017 we increased sales right across the group and delivered strong growth in operating profit in the UK, Europe and Aviva Investors.”
In addition to its half-year results, Aviva announced it had entered into a “significant” 10-year general insurance agreement with HSBC. The move will allow the bank’s customers to purchase Aviva underwritten home and travel insurance through its mobile and online channels.
Shares closed up 6.42 at 544.42.