Aviva plc 2006 Interim Results Announcement
Richard Harvey, group chief executive, commented:
“Aviva has once again delivered top and bottom line growth around the world. We’ve grown premiums, profit and dividend and are reaping the benefits of being in the right markets at the right time. Especially pleasing is our increased market share in a stronger UK market and, in line with our ambitions, international life profits growth continues to outpace excellent sales. Bancassurance continues to be an important contributor to our growth.
“Looking to the future, Europe and the US will be the two biggest long-term savings markets over the next decade. We’re in prime position to capture a significant share of European growth, having secured an early and leading franchise that cannot easily be replicated. In a single step, our acquisition of AmerUs in the United States will give us a scaleable platform to capture growth in the biggest savings market in the world. Meanwhile we continue to build scale in Asia where the savings market will offer significant rewards over the longer term.
“Our general insurance business has delivered its best combined operating ratio ever, demonstrating again the sustainability of our general insurance results. The integration of RAC is complete and we are on track to deliver our cost and revenue targets for this business.
“These results highlight the fundamental competitive advantage that Aviva derives from its balanced international portfolio of life and general insurance businesses. Our increase in profit is evenly spread, and we are poised to deliver further profitable growth both by business and geography.”
- Record half-year results with strong performance across all businesses and geographies
- Worldwide EEV operating profit up 27% to £1,699m; IFRS operating profit up 45% to £1,376m
- Strong and profitable growth in long-term savings with worldwide sales up 25%:
- UK: up 43% to £6,899m (2005: £4,825m)
- Continental Europe: up 10% to £7,227m (2005: £6,593m)
- US: up 24% to £289m (2005: £222m)
- Asia: up 80% to £386m (2005: £201m)
- Bancassurance sales up 24% to £4,055m, representing 26% of new business sales
- Group new business margin remains strong at 3.5% (2005: 3.6%)
- Life EEV operating profit up 19% to £1,021m, with 66% coming from international businesses
- Excellent general insurance result: Best ever combined operating ratio (COR) of 92%, ahead of ‘meet or beat’ commitment of 98%; general insurance and health operating profit up 23% to £866m
- Interim dividend increased by 10% to 10.82 pence per share
Enquiries:
| Richard Harvey | Group chief executive | +44 (0)20 7662 2286 |
| Andrew Moss | Group finance director | +44 (0)20 7662 2679 |
Analysts: | ||
| Charles Barrows | Investor relations director | +44 (0)20 7662 8115 |
| Jessie Burrows | Head of investor relations | +44 (0)20 7662 2111 |
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 |