Preliminary results for the 12 months ended 31 December 2005
Richard Harvey, group chief executive, commented:
“This is another great set of results from Aviva, delivered by managing our business for value. Our composite business model combines strength and flexibility in both long-term savings and general insurance to produce sustainable returns. As a result, we’ve been able to increase our dividend, moving above the rigid 5% dividend growth target that we set in 2002, and at the same time we are announcing plans to pay £700 million into our UK pension schemes.
“We’ve delivered a strong life result as profits continue to grow faster than sales. We made real progress in continental Europe where our long-term savings businesses performed well and we’ve gained good ground in the developing markets of Asia. Our bancassurance expertise has been a major factor in our progress in the UK, continental Europe and Asia. In the UK, sales continue to build momentum while maintaining strong margins.
“Our general insurance business has delivered yet another excellent result, again demonstrating strong and resilient returns. RAC delivered a good set of results, while our cost savings are on track and the integration is largely complete.
“We are confident of delivering further growth from our businesses in 2006. We will continue to evaluate new distribution and acquisition opportunities to provide additional momentum where we can create shareholder value.”
- Worldwide operating profit up 29% to £2,904 million
- Final dividend increased by 9% and 5% dividend growth target removed to improve flexibility while investing for future growth
- Healthy performance in long-term savings: Life operating profit up 11% to £1,814 million; profits from new business growing ahead of sales with Group margin up to 3.6% (2004: 3.4%)
- Best general insurance result yet: General insurance and health profit up 22% to £1,551 million; worldwide general insurance combined operating ratio (COR) of 95% (2004: 97%), comfortably beating 98% COR commitment
- Fund management profit more than doubling to £92 million^ (2004: £40 million)
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 |
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 |