10th Mar 2016 07:34
LONDON (Alliance News) - Aviva PLC on Thursday said it has entered 2016 from a position of strength after reporting higher annual operating profit for 2015 and lifting its dividend.
Operating profit increased 20% to GBP2.67 billion in 2015, the insurer said, versus GBP2.21 billion in 2014, beating company-supplied analyst expectations of GBP2.49 billion.
Aviva increased its total dividend per share for the year by 15% to 20.8 pence from 18.1p, slightly below analyst expectations of a 21.2p payment, and said it expects dividend increases to "moderate" in future.
The insurer will consider "additional" distributions to shareholders, depending on economic conditions, markets, and having excess capital and liquidity. "We are not there yet," Aviva said.
The acquisition of rival UK life insurer Friends Life helped to drive life insurance operating profit up also by 20% to GBP2.42 billion, Aviva said.
In general insurance and health, operating profits fell 5% to GBP765 million, Aviva said, due to a GBP81 million decline in investment income, while underwriting profit rose to GBP374 million from GBP341 million the prior year.
Aviva Investors, the group's asset management arm, delivered fund management operating profits of GBP105 million in 2015, up 33% on 2014.
By Samuel Agini; [email protected]; @samuelagini
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