29th Oct 2015 07:31
LONDON (Alliance News) - Aviva PLC on Thursday said the acquisition of Friends Life, the rival life insurer it bought for about GBP5.6 billion, is "everything we expected it to be", as it continues to work towards its cost savings target through the integration process.
"We have now achieved GBP91 million of savings against our target of GBP225 million," Chief Executive Mark Wilson said of the acquisition. Aviva said the savings were ahead of plan. "Overall capital synergies from the acquisition are expected to be material. The integration is progressing well and ahead of our internal timetable," Wilson said.
Aviva said its UK life business has continued to grow, with customers responding positively to new pensions freedoms on offer since the UK government acted to create more flexibility in how people save for and provide for themselves in retirement.
Value of new business in life insurance grew 25% to GBP823.0 million in the first nine months of 2015, with the UK's own figure rising by 36% to GBP404.0 million. UK life value of new business was up 13% excluding Friends Life.
Within its asset management arm, the flagship range of funds, AIMS, has continued a "strong" investment performance, according to Wilson, who said that its Target Return Fund has recorded returns of 6.6% over the past 12 months. AIMS now has GBP1.9 billion of funds under management, and Wilson said he expects that growth to continue.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Aviva