Aviva: Profit and sales jump at FTSE 100 giant as UK premiums surge

Insurance giant Aviva has reported a increase in operating profit and hiked its dividend amid a jump in insurance premiums for the first half of its 2024 financial year.

The company reported an operating profit of £875m, up 14 per cent from the £765m reported in the first half of 2023. Cash remittances rose 16 per cent to £959m, up from £825m reported in the previous year.

Overall, general insurance premiums written rose 15 per cent to £6bn.

Aviva hiked its interim dividend by seven per cent to 11.9p.

UK and Ireland general insurance premiums jumped 18 per cent to £3.8bn while its UK personal lines premiums grew by 30 per cent “driven by strong pricing discipline in the inflationary environment and new propositions.”

Meanwhile, UK commercial lines premiums grew 10 per cent “due to pricing actions and new business growth”.

General insurance premiums in Canada were also up by 10 per cent to £2.1bn as the group saw growth of 14 per cent in personal lines and six per cent in commercial lines driven by pricing actions and strong new business growth.

The groups health in-force premiums grew by 10 per cent.

While its insurance, wealth and retirement (IWR) was up 16 per cent, as it generated £5bn of net flows into the groups wealth business. The wealth business offers workplace pensions and retail savings products, which has now over £180bn of assets.

Despite this, the group did note that its retirement sales were down from HY2023 £3.2bn to £3bn.

Aviva stated that this was “driven by contraction of the equity release market and bulk purchase annuity (BPA) sales of £2.3bn (HY23: £2.4bn).

Commenting on the results, Amanda Blanc, Group CEO, said: “Sales are up. Operating profit is up. The dividend is up. Our plan to deliver more for customers and shareholders is working really well.

“We have achieved another six months of excellent trading. We have generated growth right across Aviva, thanks to our leading positions in attractive markets such as workplace pensions and general insurance in the UK and Canada.”

“We remain very positive about Aviva’s prospects. Trading conditions across the UK, Ireland and Canada, are excellent. And the UK market, our largest, is highly attractive and growing,” she added.

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