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Aviva’s underlying business shows
great resilience
The underlying business of Aviva plc, which acquired
the controlling interest in Eagle Insurance PLC, has
shown great resilience, encouraging the global giant
to declare dividends despite a tumultuous year.
Aviva is the world’s fifth largest insurance group,
serving 50 million customers across Europe, North America
and Asia Pacific. Aviva’s main business activities
are long-term savings, fund management and general insurance,
with worldwide total sales of £51.4 billion and
funds under management of £381 billion as at December
31, 2008. Aviva is the largest insurance services provider
in the UK and one of the leading providers of life and
pension products in Europe.
Highlights in 2008 included increased operating profit,
strong balance sheet and capital position, resilience
business flows from composite model and geographic spread.
The Company posted an operating profit of Sterling Pounds
(SP) of 2.2 billion up by 4% but reported an after loss
of SP 885 million. Nevertheless Aviva maintained total
dividend per share at 33.00 pence
In 2008 Aviva’s life and pensions sales up 11%
to £36,283 million and general insurance result
improved and combined operating ratio on target at 98%.
However difficult conditions in global markets has reduced
asset management result
Transforming Aviva for the future the Company has achieved
£340 million of £500 million 2010 cost savings
target. It also reported significant progress in our
UK business and launch of Aviva Investors.
The target to double US new business sales was achieved
a year early whilst moves to global brand on track
Aviva’s Chief Executive Andrew Moss commented:
“In a tumultuous year, our underlying business
has shown great resilience. Operating profits are up
and we have maintained our dividend. Bottom line earnings
have been affected by investment markets which have
predictably created significant unrealised losses during
the year. Aviva remains financially strong. We’ve
undertaken a thorough review of the value of our assets
and liabilities, and have made cautious provision for
future losses so that we are in good shape to withstand
the ongoing volatility and uncertainty in world markets.
Maintaining our capital strength has been a priority
for us and remains so this year. Meanwhile we continue
to transform Aviva for the future. In these markets
only the fittest will emerge as winners. Our increased
share of the UK life and pensions market in 2008 is
a good example of a market where we have growing competitive
advantage. Our strategy is well-suited to current markets
and our geographic diversity and composite model continues
to deliver for us.”
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