General Insurance premiums rose 29% to £8.1bn in the first half, including 42% growth in the UK & Ireland, supported by the inclusion of Direct Line. Wealth net flows increased 32% to £7.6bn, Health in-force premiums rose 5% to £1.1bn, and Retirement sales fell 24% to £2.2bn.
First-half operating profit rose 24% to £1.3bn (£1.3bn expected), with improved claims performance helping insurance profitability come in better than expected.
Cash remittances, dividends paid by Aviva’s businesses to the Group, were up 47% to £1.5bn (£1.1bn expected). The Solvency II ratio, a measure of balance sheet strength, came in at 176% (178% expected).
Guidance was unchanged, with full year earnings per share growth expected to be broadly in line with the 11% target rate.
The interim dividend rose 7% to 14.0p per share.
The shares were broadly flat in early trading.
Our view
HL view to follow.
Aviva key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.