Aviva’s profits rise as it invests in AI and big data

Group seeing strong growth in UK operations

Insurance giant Aviva has posted an increase in full-year profit and pledged to splash out more than £1 billion on acquisitions and shareholder returns.

The group, which employs more than 1,000 staff at its base at Pitheavlis, Perth, reported a 2% rise in operating profit to £3 billion in 2017.

Aviva’s British insurance arm saw profit increase 13% to £2.2bn.

“Our largest market, the UK, has gone from strength to strength, growing sales, market share and profit,” chief executive Mark Wilson said.

“For Aviva, the UK is a dependable and growing business.”

The group will deploy £2bn of excess cash this year, including £900m towards debt reduction, over £500m in capital returns to shareholders and about £600m for bolt-on acquisitions.

Last year the group established Aviva Quantum, an in-house artificial intelligence and global data science unit with 550 analysts – and Mr Wilson said the business would continue to invest in new technologies. Aviva is also working with the Financial Conduct Authority on developing ways to offer better financial guidance and support to consumers.

Mr Wilson added: “We continue to invest in our businesses and in particular on priorities such as digital to make our products and services easier for our customers.

“Aviva is now a simpler, stronger group and we are growing. Our strategy is paying dividends.”

Mr Wilson has also been pushing through a radical shake-up of the group, exiting fringe businesses to focus on its core operations in the UK, France, Poland, Ireland, Italy and Singapore and its Aviva Investors unit.

Shares closed up 1p at 508.6p.

Pitheavlis at Perth is a major operational base for insurer Aviva.