9th Mar 2023 09:31
(Alliance News) - Aviva PLC on Thursday announced a GBP300 million share buyback as it announced its full-year results with dividend up by 41%.
Shares were up 3.3% at 464.90 pence each on Thursday morning in London.
In 2022, the insurer swung to a loss of GBP1.14 billion from a profit of GBP2.04 billion the year prior. Loss per share was 38.2 pence, from an EPS of 50.1p in 2021.
Gross written premiums were down to GBP18.92 billion from GBP19.40 billion, while net earned premiums rose to GBP14.98 billion from GBP14.39 billion in 2021.
Its adjusted operating profit from continuing operations, meanwhile, rose to GBP2.21 billion from GBP1.63 billion. This beat Barclays analysts' forecasts of GBP1.55 billion for 2022.
UK & Ireland Life adjusted operating profit was up 34% with strong performance in Retirement," driven by improved margins, earnings growth on the in-force book and other favourable experience", the firm said.
Its solvency II return on equity was 16.4%, up from 10.7% last year, while its solvency II shareholder cover ratio was 212%, down from 244%.
Chief Executive Officer Amanda Blanc said: "Our core businesses in the UK, Ireland and Canada grew in 2022, and contributed to a very strong, all round performance. Life insurance value of new business is up 15%, general insurance sales are up 8% and overall operating profit is up 35%. We are investing to make it easier for customers to do business with Aviva and customer numbers in the UK have grown to 15.5 million."
Looking forward, Aviva said the "positive momentum" seen in 2022 has continued, reinforcing its confidence in its financial targets in 2023. It expects solvency II own funds to reach GBP1.5 billion by 2024.
Aviva declared a final dividend of 20.70 pence per share, up from 14.70p last year. This brought its total payout for the year to 31.00p, up 41% from 22.05p and in-line with prior guidance.
Additionally, the FTSE-100 firm announced a share buyback programme of up to a maximum aggregate consideration of GBP300 million, starting from tomorrow.
This is in line with Berenberg's estimates.
Aviva said it entered into a non-discretionary agreement with Citigroup Global Markets Ltd to undertake the programme by making market purchases of the shares. The programme is expected to complete by June 30.
By Xindi Wei, Alliance News reporter
Comments and questions to [email protected]
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Related Shares:
Aviva