Aviva’s first-half underlying operating profit rose 22% to £1.1bn, with growth largely driven by General Insurance (specifically UK & Ireland).
General Insurance premiums rose 7%, net flows into the Wealth business were up 16%, Health insurance saw 14% growth in premiums, and Retirement sales dropped 3%.
The Solvency II ratio, which measures capital strength against requirements, was strong at 206%.
The board announced an interim dividend of 13.1p, up 10%.
The group is still targeting operating profit of £2bn by 2026, with the dividend policy set for mid-single -digit growth. The acquisition of Direct Line completed at the beginning of July.
The shares rose 4.1% 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 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.This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.Non - independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place(including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing.Please see our full non - independent research disclosure for more information.