Strong operating performance - 6 months to 30 June 2011
A fitter, stronger Aviva poised for continued growth in UK and Europe
- Total operating profit up 5% to £1,337 million (HY10: £1,270 million); up 13% excluding impact of £84 million special distribution benefit in 2010
- Operating profits in Europe up 21% to £525 million despite financial and economic difficulties in the eurozone
- Operating earnings per share increased to 29.1 pence; total earnings per share of 4.1 pence are lower primarily as a result of unrealised Delta Lloyd investment variances
- Pro forma MCEV NAV, including the impact of the sale of RAC, up 33 pence from FY10 to 575 pence per share at HY11
- Group return on equity strong at 12.8% (FY10: 14.8% on a lower equity base)
- 5% increase in interim dividend to 10 pence.
Andrew Moss, Group Chief Executive, commented: “This has been a successful six months. We are beating all our operational targets. Operating profits rose in the UK despite tough economic conditions. After recent disposals, Aviva is fitter, stronger and well-positioned to be the undisputed leader in the UK market and to build on our strong European franchises. Markets may well continue to be volatile, but our strong balance sheet and capital position underpins our confidence in our continued momentum and our plans for growth.”
General Insurance: In general insurance we have built on last year's strong performance, growing sales whilst maintaining our focus on profitability. In total, our general insurance and health net written premiums rose by 9% to £4,708 million. Our general insurance performance in the UK is a particular highlight where we have built a powerful general insurance franchise and we have increased volumes in a market where rates are rising. Sales were up 14% and have now grown for six consecutive quarters. We increased personal motor sales again with customer numbers up by 670,000 over the last 18 months across our direct and broker business.
Life Insurance: Our UK life business operates in a profitable, growing market. We distribute a broad range of life insurance products across a variety of channels which provides our customers with choice and also gives our business flexibility as we adapt to market developments. In the UK, the combination of Aviva's strong brand, diverse distribution and attractive product range means that we will be well-positioned relative to our peers following the introduction of the Retail Distribution Review.
For Aviva's full statement please click here...
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