Preliminary results for the 12 months ended 31 December 2004 and acquisition of RAC plc
“Aviva is thriving. This is a strong set of results, delivered by managing our business for value for customers and shareholders. Our diversified business model brings the complementary qualities of long-term savings and general insurance. Our aim is profitable growth in all of our businesses.
“We have one of the strongest platforms for long-term savings growth across continental Europe and this now accounts for over 50% of our life and pensions new business. We've also gained good ground in the long-term growth markets of Asia. The outlook is brighter for long-term savings across our main markets as savers' confidence continues to return.
“Our general insurance business continues to deliver very strong and resilient earnings through scale benefits and innovation. Today we've also announced the acquisition of RAC plc which builds on our success in the UK general insurance market and creates a powerful new combination in insurance and motoring services while delivering substantial shareholder value potential to Aviva's shareholders.
“Our shareholders are seeing healthy dividend growth underpinned by strong statutory profits.”
- Worldwide operating profit up 25% to £2,344 million from clear focus on managing business for value
- Life operating profit up 9% to £1,611 million reflecting steady return of customer confidence
- Accelerating long-term savings sales growth up 12% to £20,687 million with outperformance in many markets in Europe and investment sales up 44% to £1,629 million
- Continued excellent general insurance performance with profits up 47% to £1,326 million; worldwide combined operating ratio ahead of target at 96.7%
- Aviva to bring together Norwich Union Insurance and RAC to create a powerful new combination in insurance and motoring services and delivering substantial shareholder value potential to Aviva's shareholders (see separate announcement - PDF 0.23MB)
- Total dividend increased by 5%, strongly covered by post tax statutory profits
- Improved transparency and disclosure from early adoption of European Embedded Value
Enquiries:
| Richard Harvey | Group chief executive | +44 (0)20 7662 2286 |
| Andrew Moss | Group finance director | +44 (0)20 7662 2679 |
| Analysts: | ||
| Steve Riley | Investor relations director | +44 (0)20 7662 8115 |
| Media: | ||
| Hayley Stimpson | Director of external affairs | +44 (0)20 7662 7544 |
| Sue Winston | Head of group media relations | +44 (0)20 7662 8221 |
| Rob Bailhache | Financial Dynamics | +44 (0)20 7269 7200 |
| Transaction press office | +44 (0)20 7662 2866 |