Aviva Reports 14% Increase in Profits

Insurance giant Aviva has announced a significant increase in sales and profits, attributing its success to robust trading over the past six months. The London-listed company reported an operating profit of £875 million for the first half of 2024, marking a 14% rise compared to the same period last year and surpassing analyst expectations. This growth was primarily driven by a 15% increase in general insurance premiums, which reached £6 billion across the group, with an impressive 18% rise in the UK and Ireland. The company’s performance was further bolstered by a remarkable 49% growth in its protections business, largely due to the recent acquisition of AIG Life. Group chief executive Amanda Blanc expressed confidence in the company’s trajectory, stating, “Sales are up, operating profit is up, the dividend is up.” She emphasized that Aviva's strategy to enhance value for customers and shareholders is yielding positive results, highlighting the firm’s strong positions in key markets such as workplace pensions and general insurance in the UK and Canada. However, not all divisions performed equally well. Aviva's retirement division experienced a decline in sales, dropping to £3.04 billion from £3.22 billion, attributed to a contraction in the equity release market. Despite this setback, analysts, including Jefferies' James Pearse, noted that Aviva continues to exceed its targets, consistently beating consensus expectations across its key performance metrics.