In its interim results for the 6 months ended 30 June 2004, Aviva reported strong growth in achieved operating profits, which were up 37% to £1,130 million.
The company says it had good life assaurance results in testing market conditions. Emphasising profits at the expense of revenue, the company says life and pensions margins were up at 26.5% (2003:24.5%).
Aviva reported a gradual recovery in new life, pension and investment sales. Total sales were up 7%, while life and pensions APE were up 2% at £1.2 billion, including Continental Europe up 5% and UK up 3%.
The general insurance businesses turned in whit Aviva calls an “excellent” performance. The worldwide combined operating ratio was ahead of target at 97% (2003: 101%).
Richard Harvey, group chief executive, commented: “Aviva is in great shape. Profits are up 37% and long-term growth prospects remain strong. Our focus is on value and cost control across our businesses. This has driven an increase in margins in our long-term savings business. In general insurance we’ve delivered another set of excellent results, maximising the competitive advantages of scale. Consumers are slowly regaining their appetite for saving. The speed of recovery will be linked to investment market conditions and the elimination of regulatory uncertainty, particularly in the UK. Our extensive distribution networks in Europe mean we will capture growth when this recovery happens. We will also continue to develop our businesses in Asia, which represent a significant long-term growth opportunity for us.”