In its interim results for 2023, Aviva reported that its operating profit rose by 8% to £715 million in the first half of the year.
The firm marked the increase from the same point in 2022 when operating profits stood at £661 million.
Aviva reported that General Insurance gross written premiums (GWP) were up 12% to £5.27 billion.
According to Aviva, UK&I GWP increased by 13% to £3.22 billion, and Canada General Insurance GWP increased by 12% at constant currency to £2.06 billion.
Elsewhere, Protection and Health sales in H1’23 were also up 23%, with strong growth in Health and Individual Protection.
Wealth continued to show resilience in challenging market conditions with net flows of £4.3 billion. Strong growth in Workplace net flows was more than offset by lower net flows in Platform.
Meanwhile, Retirement sales were up 17%, driven by strong Bulk Purchase Annuities (BPAs) and Individual Annuity performance.
Aviva also reported a solid Group combined operating ratio (COR) of 94.8%, presented on an undiscounted IFRS 17 basis.
The estimated Solvency II shareholder cover ratio of 202% was lower than FY22 of 212%. Aviva says that its high-quality shareholder asset portfolio of £78.5 billion (FY22: £78.4 billion) continues to perform well and is defensively positioned.
Amanda Blanc, Group Chief Executive Officer, commented, “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.”
“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.”
“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,” Blanc concluded.
