Insurance giant Aviva has announced higher sales and profits due to “excellent business performance” over the past six months.
The London-listed company said it was boosted by a rise in UK insurance premiums, while revenues at its pensions division fell.
The company reported operating profit of £875 million for the first half of 2024, up 14% from the same period last year, beating analysts’ expectations.
We had an excellent first half of 2024. We generated growth across the board at Aviva.
We continue to benefit from the balanced and diversified business we have built and are confident for the remainder of 2024 and beyond. #FinancialUpdate #AvivaResults
— Aviva plc (@avivaplc) 14 August 2024
The company reported a 15% increase in general insurance premiums to £6 billion across the group, with an 18% increase in the UK and Ireland.
In the UK and Ireland, premiums rose as higher prices and new offerings contributed to a 30% increase in personal lines and a 10% increase in commercial lines.
Aviva also benefited from 49% growth in its insurance business following the acquisition of AIG Life earlier this year.
Group CEO Amanda Blanc said: “Sales are up, operating profit is up, dividends are up.”
“Our plan to offer more to our customers and shareholders is working really well.
“We have had another six months of excellent sales.
“We have delivered growth at Aviva thanks to our leading positions in attractive markets such as occupational pensions and general insurance in the UK and Canada.”
Meanwhile, the company’s pensions division saw revenue fall from £3.22 billion to £3.04 billion due to a decline in the capital release market.
James Pearse, analyst at Jefferies, said: “Aviva continues to deliver strong results against its targets, beating consensus expectations on all key metrics.
“In our view, Aviva remains the only UK insurer that can reliably deliver long-term exceptional returns on capital, value-enhancing mergers and acquisitions, attractive ordinary dividend growth and consistent earnings per share growth.”
