16th Aug 2023 08:18
(Clarifies that Aviva is aiming for a gross cost reduction for its 2024 target.)
(Alliance News) - Aviva PLC on Wednesday reported a profit in the first half of 2023, boosted by growth in gross written premiums.
The London-based insurer said its interim IFRS post-tax profit was GBP377 million, compared to a loss of GBP198 million a year before.
General insurance gross written premiums rose 12% to GBP5.27 billion from GBP4.69 billion.
However, the solvency II shareholder cover ratio in the first half of 2023 declined to 202% from 234% a year prior.
The company declared an interim dividend of 11.1 pence per share, up 7.8% from 10.3p a year before. Aviva is aiming for a total 2023 dividend of 33.4p, up 7.7% from 31.0p in 2022.
Looking ahead, Aviva expects to exceed its Solvency II operating funds generation target of GBP1.5 billion per year by 2024. Further, its 2024 target of GBP750 million gross cost reduction is eyed to be delivered a year early.
Operating profit for 2023 is anticipated to grow between 5% and 7% from 2022's GBP1.35 billion.
Aviva shares rose 1.9% to 387.00 pence each on Wednesday morning in London.
By Tom Budszus, Alliance News reporter
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