Aviva plc 2023 interim results announcement

Strong first half with profitable growth momentum across the Group

Group operating profit‡,1 up 8% and Solvency II own funds generation up 26%

Confident outlook for 2023, expect to exceed Group medium-term targets

Interim dividend per share up 8% to 11.1p

Operating profit‡,1 Solvency II OFG General Insurance undiscounted COR Solvency II shareholder cover ratio 2023 interim dividend











HY222: £661m

HY223: £514m

HY222: 93.8%

FY22: 212%

HY22: 10.3p

Amanda Blanc, Group Chief Executive Officer, said:

“Aviva is delivering consistently strong and profitable growth. In the first half of 2023 we grew sales, operating profit and dividends for our shareholders. Our excellent trading momentum is a direct result of the decisions we have taken over the last three years to re-focus Aviva. Today, Aviva has leading positions in growing markets, providing strong resilience in the current economic climate.

“In the UK & Ireland, general insurance premiums were up 13%, with healthy sales in both our commercial and personal lines businesses, where our Aviva Zero product has now attracted 250,000 new policies since launch. In Wealth, our market-leading Workplace business grew net flows by 25%. We continue to see very strong demand for private health insurance, with sales increasing by 58% as we expanded our services to corporate and individual customers. Our excellent Canadian general insurance business is also growing well, with sales 12% higher as a result of a strong performance in commercial lines, and the continued success of our local banking partnership.

"Aviva's cash and capital position is robust and, in line with our guidance, we have increased the interim dividend by 8% to 11.1p, and estimate full year 2023 operating profit growth of 5% to 7%. We expect to make further strong progress with our clear strategy, growth opportunities in all of our markets, and the £1 billion investment well underway to accelerate our future performance.

“Aviva's performance and prospects have been transformed from just a few years ago. Today's Aviva is about delivery and momentum, and these results show that Aviva is consistently meeting its promises. We expect to exceed our financial targets and we are making progress each quarter, as we said we would. I remain confident and excited that there is so much more Aviva can and will achieve.

Strong first half results with continued profitable growth momentum

  • Group operating profit‡,1 up 8% to £715m (HY222: £661m). Operating EPS‡,4 up 10% to 19.9p (HY222,4: 18.1p).
  • Solvency II operating own funds generation (OFG) up 26% to £648m (HY223: £514m). On track to exceed our target of £1.5bn OFG per annum by 2024. Solvency II operating capital generation (OCG) up 9% to £580m (HY223: £532m).
  • Solvency II return on equity 10.8% (HY22: 6.7%).
  • General Insurance gross written premiums (GWP) up 12% to £5,274m (HY22: £4,694m). Undiscounted COR of 94.8% (HY222: 93.8%) and discounted COR of 91.3% (HY22: 92.8%). Operating profit‡,1 up 29% to £470m (HY222: £364m).
  • Insurance, Wealth & Retirement (IWR) VNB up 7% to £319m (HY223: £297m), and operating value added up 32% to £640m (HY22: £486m).
  • Baseline controllable costs‡,5 flat at £1,340m (HY22: £1,342m), absorbing c.7% of inflation. With our continued focus on cost efficiency we now expect to deliver our 2024 target of £750m gross cost reduction a year early.
  • Cash remittances of £825m were up 3% (HY22: £798m). On track to exceed our target of >£5.4bn cumulative cash remittances 2022-24.
  • IFRS profit for the period6 of £377m (HY222,10: £198m loss).
  • Interim dividend per share up 8% to 11.1p (HY22: 10.3p); £300m buyback executed in first half.

Capital position is strong and asset portfolio well positioned

  • Estimated Solvency II shareholder cover ratio of 202% (FY22: 212%) and centre liquidity (July 23) of £1.6bn (Feb 23: £2.2bn).
  • Solvency II debt leverage ratio of 30% pro forma for planned debt reduction (FY22: 30%).
  • Aviva's high quality shareholder asset portfolio of £78.5bn (FY22: £78.4bn) continues to perform well and is defensively positioned.

Continued positive trading performance

  • UK&I General Insurance GWP up 13% to £3,219m (HY22: £2,840m) and undiscounted COR of 96.3% (HY222: 95.3%). UK personal lines GWP grew 16% driven by strong rate increases as we continue to manage the inflationary environment, as well as new product propositions. UK commercial lines GWP grew 11% due to rate increases and new business growth.
  • Canada General Insurance GWP up 12% in constant currency to £2,055m (HY22: £1,854m) and undiscounted COR of 92.8% (HY222: 91.8%). We saw excellent growth in constant currency of 17% in commercial lines and 8% in personal lines driven by rate increases and strong new business growth.
  • Protection and Health sales7 were up 23% with strong growth in Health and Individual Protection. VNB was up 18% to £118m (HY223: £100m) driven by higher volumes in Health together with beneficial assumption changes made in H2 2022.
  • Wealth continued to show resilience in challenging market conditions with net flows of £4.3bn (HY22: £5.0bn). Strong growth in Workplace net flows was more than offset by lower net flows in Platform.
  • Retirement sales7 were up 17% to £3,223m (HY22: £2,762m) with strong growth in Bulk Purchase Annuities (BPAs) and Individual Annuities. VNB was up 2% to £74m (HY223: £72m). The outlook for BPA volumes remains positive with a strong pipeline for the second half.
  • Aviva Investors external net flows remained positive at £0.2bn (HY22: £0.2bn) and reflect the tough market backdrop.

Group financial performance

General Insurance GWP Insurance, Wealth & Retirement VNB IFRS profit for the period6







HY22: £4,694m

HY223: £297m

HY222,10: £198m loss

Cash and liquidity

Cash remittances Centre liquidity





HY22: £798m

Feb 23: £2.2bn

Confident outlook

Our positive momentum continued in the first half of 2023 with a strong set of results, and our diversified business model positions us well to navigate the current macroeconomic environment. This reinforces our confidence in the prospects, financial targets and outlook for the Group.

In General Insurance we remain focused on pricing appropriately for the ongoing inflationary environment. Overall, we expect the rating environment to remain favourable across both commercial and personal lines. We expect the underlying COR to benefit from the earn through of rating actions already taken and still to come in the second half. However, we wouldn't expect the favourable weather and PYD experience of the first half to necessarily repeat.

In Insurance, Wealth & Retirement we expect to see continued growth. We anticipate continued momentum in BPAs in the second half as a growing number of pension schemes look to de-risk. In Wealth, our Workplace business will continue to offer strong growth opportunities while market conditions present a near-term challenge in Adviser Platform. We continue to expect strong demand for Protection and Health products.

We expect full year 2023 Group operating profit‡,1 to grow between 5% to 7% from £1,350m in 2022.

We are on track to exceed our Solvency II operating own funds generation target of £1.5bn per annum by 2024 and our cash remittance target of >£5.4bn cumulative (2022-24). We expect to deliver our target of £750m gross cost reduction by 2024 one year early.

We remain committed to delivering for our shareholders. Consistent with previous guidance, we expect to pay a dividend of c.£915m or c.33.4p for 2023, with low-to-mid single digit growth in the cash cost of the dividend thereafter.

Under our capital framework, which remains unchanged, surplus capital is available for reinvestment in the business, bolt-on M&A and/or additional returns to shareholders. We anticipate further regular and sustainable capital returns in the future.

Download our 2023 half year results announcement PDF (1.5 MB)

Download our 2023 half year results presentation PDF (6.3 MB)

Watch our 2023 half year results update for investors and analysts

Watch our Group CEO, Amanda Blanc's half year results 2023 video

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Transcript  for video Amanda Blanc's 2023 half year results video

Smera Ashraf:

Hi, Amanda.

Amanda Blanc:

Hi, Smera it’s absolutely lovely to see you.

Smera Ashraf:

Thank you very much. How are you today?

Amanda Blanc:

I'm really good. Thank you very much.

Smera Ashraf:

So we’re at the half year point.

How are we performing?

Amanda Blanc:

So, look, first of all, let's start by thanking everybody for the performance. I think that our Aviva colleagues have once again made it click for our customers and done a really, really fantastic job. And you'll see that through these results. I think we've got some real momentum despite the challenging macro-economic backdrop.

Aviva has actually performed really strongly in the first half. We have delivered profitable growth, so, you know, all parts of the business are showing that growth. And I think that what we've shown is that the diversified business model and the right strategy are working really well for us.

Smera Ashraf:

That sounds great. So what are the key highlights for you at this half year?

Amanda Blanc:

It's hard to pick a few things, but if I was to focus on, you know, the core markets and the three GI businesses have delivered double digit growth in each of the markets; in Canada, Ireland and in the UK.

So in the UK business, Adam and the team have delivered really strong growth in  SME and in mid-market.

In Canada, Jason and the team have delivered 16% growth in Commercial Lines.

Doug and the team in the Wealth business have actually delivered 100 billion of assets under administration on the Workplace platform.

That is a real achievement.

And Mark and the team have originated over half a billion of assets which support the annuity business.

So I think a really strong performance from all of the markets.

Smera Ashraf:

That's really great. That's really impressive. Now we talk about  our four strategic priorities. This year is about the year of the customer. So how are we delivering for them?

Amanda Blanc:

Yes. So I mean, we're really passionate about delivering for the customer. We have over 18 million customers across Aviva and 16 million of those customers in the UK.

And so it's really, really important that we deliver, you know, what we say we're going to do for our customers.

So some of the things that we've delivered that I'm particularly proud of; the COVID Health Pledge. We've delivered £128 million of that COVID Health Pledge now, which is something obviously we promised to do when COVID struck.

The second thing, which I think has been brilliant, is on the Direct and Adviser platforms.

Instead of holding on to any of the increased interest, we've actually paid that interest in full, back to the customers who have cash balances on that platform.

That's something that I think, you know, we are very, very proud of.

We've digitally built our propositions for all of our customers and we have really good improvement on our customer journeys.

And the final point I think worth making on customers is we now have 6 million customers using MyAviva, and that's important for them because it makes their life easier.

It's also important for us because a MyAviva customer is twice as likely to buy another product from Aviva.

So, you know, all in all, I think strong delivery for our customers this half year.

Smera Ashraf:

Thank you. That's really great.

So can we talk about the other three priorities and how we're delivering against them?

Amanda Blanc:

Yes, of course. So let's focus on growth. You know, I think here I've spoken about the growth in the General Insurance businesses and the Wealth platform, but there are some real specific things here that I think are really great.

Aviva Zero, which is something that we launched 18 months ago, has delivered 250,000 policies so far. So that's really, really good growth and that's our digitally led carbon conscious motor product.

We have secured the Barclays back book which is another 350,000 customers that are now directly Aviva customers.

And we're seeing positive flows onto the Aviva platform from the business that we bought last year; Succession Wealth. So in growth, I think we've really delivered in the first half of this year.

For efficiency, some real strong shout outs here too.

First of all, we've streamlined the IT platform. We've simplified our product set, which makes it easier for our customers and also for our colleagues.

We've actually produced more investment in technology, which means that we're more efficient. We've reduced our property footprint. And as a consequence of that, we've been able to announce today that we have achieved our cost reduction target of £750 million, one year early. Now that I think is a terrific achievement, especially set in the context of the inflationary environment that we're operating in.

And then finally, on sustainability, have actually achieved three years early, 100% of our global energy usage from renewable sources. So, you know, that again, is something that we are incredibly proud of.*

Smera Ashraf:

That sounds really strong and positive. What's the one key takeaway you'd like everyone to take from today?

Amanda Blanc:

So there's probably more than one key takeaway. But I think the overriding thing I want everybody to take away is that we've really got some momentum here.

We're delivering growth. We're delivering for our customers. We're delivering profitably, and also we're delivering cost efficiency. But also we're delivering for our shareholders.

There’s a growing dividend and also regular and sustainable returns of capital.

But we don’t intend to stop here. That momentum that I talked about is coming through in those four strategic priorities. So it’s a really really exciting time at Aviva.

Smera Ashraf:

That's really great. Thank you so much for spending some time and talking me through the results.

Amanda Blanc:

Thank you very much.


*In 2022, we achieved our goal and now ‘match’ all our electricity to renewable sources in our core markets of UK, Ireland and Canada.

‡     Denotes Alternative Performance Measures (APMs) and further information can be found in the 'Other information' section.
R     Symbol denotes key performance indicators used as a base to determine or modify remuneration.
1.     Reference to operating profit represents Group adjusted operating profit which is a non-GAAP APM and is not bound by the requirements of IFRS. Further details of this measure are included in the 'Other information' section.
2.     The 2022 comparative results, which were previously prepared under IFRS 4, have been restated following the adoption of IFRS 17 from 1 January 2023, as described in note B2(a).
3.     The 2022 comparatives have been restated from those previously published for methodology changes described in the 'Other information' section.
4.     Operating earnings per share is derived from the Group adjusted operating profit APM. Further details of this measure are included in the 'Other information' section. The 2022 comparatives have been calculated using the weighted average number of shares in issue as if the share consolidation at taken place on 1 January 2022.
5.     Baseline controllable costs exclude strategic investment, cost reduction implementation, IFRS 17 and other costs not included in the 2018 cost savings target baseline.
6.     IFRS profit/(loss) for the period represents IFRS profit/(loss) after tax.
7.     Sales for Insurance (Protection & Health) refers to Annual Premium Equivalent (APE). Sales for Retirement (Annuities and Equity Release) refers to Present Value of New Business Premiums (PVNBP). Sales or premiums for General Insurance refer to gross written premiums (GWP). APE, PVNBP and GWP are APMs and further information can be found in the 'Other information' section.
8.     IFRS Shareholders' equity is equity attributable to shareholders of Aviva plc, less preference capital.
9.     Adjusted IFRS Shareholders' equity is IFRS shareholders' equity plus CSM, net of tax.
10.   Since the publication of initial 2022 results under IFRS 17 and IFRS 9 on 19 July 2023, IFRS loss for the period, IFRS Shareholders' equity and Adjusted Shareholders' equity for half year 2022 has been adjusted for a favourable impact of £200 million (net of tax), in preparation of the Half Year Report 2023. See note 2.i Profit and earnings per share.
11.   Rounding differences apply.


Investor contacts:

Rupert Taylor Rea
+44(0) 7385 494 440

Joel von Sternberg
+44(0) 7384 231 238

Michael O'Hara
+44(0) 7837 234 388

Media contacts:

Andrew Reid 
+44 (0)7800 694 276

Sarah Swailes
+44 (0)7800 694 859


Presentation slides: 0700 hrs BST

Real time media conference call: 0730 hrs BST

Analyst conference call/audiocast: 0830 hrs BST

Notes to editors

  • All figures have been translated at average exchange rates applying for the period, with the exception of the capital position which is translated at the closing rates on 30 June 2023. The average rates employed in this announcement are 1 euro = £0.88 (HY22: 1 euro =£0.84) and CAD$1 = £0.60 (HY22: CAD$1 = £0.61). Where percentage movements are quoted on a constant currency basis, this is calculated by applying year to date average exchange rates to prior period.
  • Growth rates in this announcement have been provided in sterling terms unless stated otherwise.
  • All percentages, including currency movements, are calculated on unrounded numbers so minor rounding differences may exist.
  • Throughout this report we use a range of financial metrics to measure our performance and financial strength. These metrics include Alternative Performance Measures (APMs), which are non-GAAP measures that are not bound by the requirements of IFRS and Solvency II. A complete list and further guidance in respect of the APMs used by the Group can be found in the 'Other information' section.
  • We are one of the UK's leading Insurance, Wealth & Retirement businesses and we operate in the UK, Ireland and Canada. We also have international investments in India, China and Singapore.
  • We help our 18.7 million customers make the most out of life, plan for the future, and have the confidence that if things go wrong we’ll be there to put it right.
  • We have been taking care of people for more than 325 years, in line with our purpose of being ‘with you today, for a better tomorrow’. In 2022, we paid £23.2 billion in claims and benefits to our customers.
  • Aviva is a market leader in sustainability. In 2021, we announced our ambition to become Net Zero by 2040, the first major insurance company in the world to do so. This plan means Net Zero carbon emissions from our investments by 2040; setting out a clear pathway to get there with a cut of 25% in the carbon intensity of our investments by 2025 and of 60% by 2030; and Net Zero carbon emissions from our own operations and supply chain by 2030. Find out more about our climate goals at www.aviva.com/climate-goals and our sustainability ambition and action at www.aviva.com/sustainability
  • Aviva is a Living Wage and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at www.aviva.com/about-us/our-people
  • As at 30 June 2023, total Group assets under management at Aviva Group were 358 billion and our estimated Solvency II shareholder capital surplus as at 30 June 2023 was £7.8 billion. Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
  • For more details on what we do, our business and how we help our customers, visit www.aviva.com/about-us

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