Aviva interim results

Aviva recently declared an interim dividend increase of 5% with the total group operating profit jumping up by 21%, which demonstrates a robust operational performance across all its major businesses.
Equity markets continue to recover but after a strong run up to March Aviva’s share price did not perform as well as anticipated in the last quarter.
The Company’s general insurance and health operations delivered and increase in total operating profit of 694 million as opposed to 583 million for the same period last year. Its underwriting profit was higher at 182 million as opposed to 92 million in 2004.
Investment returns increased as a result of a higher asset base at the start of the year. Worldwide net premiums written were 5.2 billion, only a slight increase from 5.1 billion the previous year.
The group COR for general insurance was 95%, which beat its target of 100% and reflected strong performances across most businesses, with a reduction in worldwide claims ratio to 64%. Worldwide expense ratio was maintained at 11%, reflecting the benefit of continuing cost efficiency initiatives across its business operations offset by its continued investment in the business to gain competitive advantage.
Aviva’s distribution ratio was 31%.
The Company’s sustained profitability is exemplified by a 19% increase in operating profit to 431 million as opposed to 361 million and a COR of 96%.
The Company’s general insurance portfolio in Canada is seeing best results in its general insurance businesses.
Operating profit from Aviva Canada, the Company’s second-largest general insurance operation, was 67 million as opposed to 52 million in 2004. This improved performance reflected the impact of lower claims frequency.
Aviva’s chairman Pehr Gyllenhammar says the Company’s statutory accounts are now prepared on the new International Financial Reporting Standards (IFRS) basis.
The Company has also initiated a corporate social responsibility (CSR) program, which covers its businesses worldwide, and which enhances business performance with a goal toward good governance a priority for the board.