Aviva 2015 Adjusted Operating Profit +20%; Raises Dividend
10 March 2016 - 7:15PM
Dow Jones News
By Ian Walker
LONDON--Aviva PLC (AV.LN) Thursday raised its dividend and said
it remains focused on transforming the business as it reported a
20% rise in 2015 adjusted operating profit.
The world's sixth-largest insurance company measured by net
premium income, added that the integration of Friends Life has gone
faster and better than expected. It expects to achieve the target
of 225 million pounds ($313.62 million) integration synergies in
2016, one year ahead of schedule.
Aviva, which has around 34 million customers across 16
countries, added that its economic capital surplus--a measure of
financial stability--rose to GBP11.6 billion, from GBP8.0 billion.
Its net asset value rose to 389 pence a share, from 340 pence at
Dec. 31, 2014. This compares with consensus forecasts of 389 pence
based on 11 analysts forecasts supplied by the company.
The insurer had a solvency II ratio of 180% and a surplus of
GBP9.7 billion.
For the year ended Dec. 31, 2015 Aviva made an adjusted
operating profit, stripping out amortization and impairments and
other items, of GBP2.67 billion, compared with GBP2.21 billion a
year earlier. Net profit fell to GBP918 million from GBP1.57
billion in 2014.
The value of new business rose 24% to GBP1.19 billion, making 12
consecutive quarters of growth, Aviva said.
The board has raised the final dividend 15% to 14.05 pence a
share, making a total payout for the year of 20.8 pence, compared
with 18.1 pence in 2014.
Last June, Aviva completed its GBP5.6 billion purchase of
Friends Life Group Ltd., creating the U.K.'s largest insurance,
savings and asset-management company.
Aviva has also been selling off businesses as part of its
strategy to focus on markets where it has scale or a sustainable
competitive advantage to maximize return on capital. It has sold
its 47% stake in South Korean business Woori Aviva Life Insurance
and U.S. equity manager River Road Asset Management LLC, both for
undisclosed sums.
The firm has also restructured its Italian businesses in deals
with UBI Banca and UniCredit SpA.
Shares closed Wednesday at 459.60 pence. They are currently down
18% over the past 12 month
-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
March 10, 2016 03:00 ET (08:00 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Aviva (PK) (USOTC:AVVIY)
Historical Stock Chart
From Mar 2024 to May 2024
Aviva (PK) (USOTC:AVVIY)
Historical Stock Chart
From May 2023 to May 2024
