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Aviva profits soar as UK new business jumps 10%
05 August 2010
Aviva recorded a 21% jump in operating profit in the first half of the year, with the insurer declaring 6% dividend increase. In the six-month period to 30 June, Aviva's IFRS operating profit rose 21% to £1.27bn, up from £1.04bn for the same time last year. UK life and pensions new business rose to £5.19bn, up 10% from £4.73bn in H1 09. Aviva says its strong performance and capital generation, which is on track to deliver £1.5bn net capital in 2010, allowed it to increase its interim dividend up 6% to 9.5p. The company say overall positive performance was lifted by its bancassurance business. This morning RBS announced it has entered into a new distribution agreement with Aviva, replacing their current joint venture. It provides protection, pension and investment products through RBS's distribution network, with the parties sharing profits. Aviva also announced a major new UK partnership with Santander this week. Group chief executive Andrew Moss says: "The UK and Europe and our major drivers offer the greatest absolute growth over the next five years. These markets make up 80% of Aviva's profits. "Our high capital generation has allowed investment in the business and supported our growth, in addition to the diversity of our business, and this is reflected in the increased dividend payments." Aviva's share price soared on news of its results, up 2.2%, or 8.1p to 376p per share just after opening. Published by IFAonline
