Aviva plc 2007 Interim Results Announcement
Andrew Moss, group chief executive, commented:
"My new management team brings energy, pace and fresh thinking to Aviva. Our top priority is to realise the full potential of our existing businesses.
"Our new regional structure gets us closer to our customers, making it easier to offer products that are relevant in today’s changing market with better service. Constant attention to meeting the needs of our current and future customers will create extra sales momentum and deliver growth. By eliminating unnecessary complexity, and drawing our operations across the world closer together, we will boost productivity and deliver further value to our customers and shareholders.
"Overall, Aviva has performed well in the first half of 2007. Substantial weather related losses in the UK have been countered by strong growth across our life and asset management businesses. The US has continued to be our star performer."
- Strong and profitable growth in long-term savings
- Worldwide sales up 25% to £19,294m
- Life EEV operating profit up 24% to £1,251m, with growth across all regions
- UK: Record half year; sales up 7% to £7,415m; higher margins, improved service and lower costs
- Europe: Excellent performance; sales up 14% to £8,131m; strong growth in Southern and Eastern Europe
- US: Outstanding performance; sales up 51%# to £1,716m; integration on track
- Asia Pacific: Continued strong sales growth, up 72% to £2,032m; new markets entered
- General insurance profits hit by UK weather
- Combined operating ratio at 97%, ahead of ‘meet or beat’ commitment of 98%
- General insurance and health profit down 34% to £560m - exceptional UK weather losses of £235m
- Resilient result due to composite model of life, general insurance and asset management
- EEV operating profit lower by 8% to £1,541m
- IFRS operating profit up 1% to £1,375m
- Interim dividend increased by 10%
- Fresh focus by new management team on strategic priorities and momentum to drive profitable growth
- Top priority to realise the full potential of existing businesses
Enquiries:
| Andrew Moss | Group chief executive | +44 (0)20 7662 2679 |
| Philip Scott | Group finance director | +44 (0)20 7662 2264 |
Analysts: | ||
| Charles Barrows | Investor relations director | +44 (0)20 7662 8115 |
| Amanda Wilbraham | Senior manager, 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 |
| Vanessa Rhodes | Group media relations manager | +44 (0)20 7662 2482 |
| James Murgatroyd | Finsbury | +44 (0)20 7251 3801 |