Aviva posts 5% rise in profits

4th August 2011

The company also said it benefited from the sale of its RAC auto recovery and insurance business to buyout firm the Carlyle Group for £1 billion ($1.64 billion), or 17 times earnings, and the sale of part of its shareholding in Dutch insurer Delta Lloyd NV earlier in the year, says the report.

However Aviva's bottom line was affected by £800 million investment swings at Delta Lloyd, which resulted in a net loss of £59 million, from a profit after tax of £1.5 billion last year.

"After recent disposals, Aviva is fitter, stronger and well-positioned to be the undisputed leader in the U.K. market and to build on our strong European franchises," said Andrew Moss, group chief executive. "Markets may well continue to be volatile, but our strong balance sheet and capital position underpins our confidence in our continued momentum and our plans for growth."

Aviva has revealed it is looking to increase its presence in corporate savings and protection in the UK during 2011, adds Financial Adviser.

The results showed a year-on-year increase of 3% in UK operating profit to £709m for the six months to June 2011, while its life figures were £462m, down from £463m year on year.

Life and pensions sales in the UK were up 5% to £5.4bn in the first six months of 2011, while total pension sales were up 33%, with group personal pensions up 82%, according to the interim management statement.

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