Aviva results show ‘tangible progress’

Aviva has today posted its 2014 preliminary results, with group chief executive officer Mark Wilson stating the ‘results show tangible progress’.

‘These results show tangible progress, with all key metrics moving in the right direction. Cash is up 65%, operating earnings per share is up 10%, value of new business is up 15% and book value is 26% higher,’ said Mark Wilson, group chief executive officer.

He continued, ‘Operating expenses are £571 million lower than our 2011 base-line, debt ratios are down and our full year combined ratio of 95.7% is the best in eight years.

‘We have increased our final dividend by 30% to reflect the progress made during the year and our improved financial position. We have entered 2015 in a position of strength.

‘Nevertheless, it would be wrong to assume that our turnaround is nearing completion as we have further to travel than the distance we have come.’

The groups operating profit increased by six per cent to £2,173m, with the value of its new business also increasing to a record £1,009m.

Aviva’s UK & Ireland general insurance business improved its combined operating ratio (COR) by 2.3 percentage points to 94.9% and increased its underwriting profit 66% to £204m. Net written premium declined four per cent to £3,935m but most of this reduction occurred in the earlier part of the year. Its UK commercial book showed significant improvement, with the COR improving to 92.8% as it completed portfolio actions to improve the quality of its commercial motor book and reserves developed more favourably relative to the prior year.

For the full results please click here: http://www.aviva.co.uk/media-centre/story/17466/aviva-plc-2014-preliminary-results-announcement/

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