Aviva plc 2023 interim results announcement

by | Aug 16, 2023

Aviva Plc have reported their 2023 interim results, with a strong first half with profitable growth momentum across the group operating profitup 8% to £715m (HY222: £661m), with operating EPS up 10% to 19.9p (HY22: 18.1p). Amanda Blanc, Group Chief Executive Officer, has commented on the results, which can be seen below:

“Aviva is delivering consistently strong and profitable growth. In the first half of 2023 we grew sales, operating profit and dividends for our shareholders. Our excellent trading momentum is a direct result of the decisions we have taken over the last three years to re-focus Aviva. Today, Aviva has leading positions in growing markets, providing strong resilience in the current economic climate.

“In the UK & Ireland, general insurance premiums were up 13%, with healthy sales in both our commercial and personal lines businesses, where our Aviva Zero product has now attracted 250,000 new policies since launch. In Wealth, our market-leading Workplace business grew net flows by 25%. We continue to see very strong demand for private health insurance, with sales increasing by 58% as we expanded our services to corporate and individual customers. Our excellent Canadian general insurance business is also growing well, with sales 12% higher as a result of a strong performance in commercial lines, and the continued success of our local banking partnership.

“Aviva’s cash and capital position is robust and, in line with our guidance, we have increased the interim dividend by 8% to 11.1p, and estimate full year 2023 operating profit growth of 5% to 7%. We expect to make further strong progress with our clear strategy, growth opportunities in all of our markets, and the £1 billion investment well underway to accelerate our future performance.

“Aviva’s performance and prospects have been transformed from just a few years ago. Today’s Aviva is about delivery and momentum, and these results show that Aviva is consistently meeting its promises. We expect to exceed our financial targets and we are making progress each quarter, as we said we would. I remain confident and excited that there is so much more Aviva can and will achieve.”

The full Continued positive trading performance announcements can be seen below:

  • UK&I General Insurance GWP up 13% to £3,219m (HY22: £2,840m) and undiscounted COR of 96.3% (HY22: 95.3%). UK personal lines GWP grew 16% driven by strong rate increases as we continue to manage the inflationary environment, as well as new product propositions. UK commercial lines GWP grew 11% due to rate increases and new business growth.
  • Canada General Insurance GWP up 12% in constant currency to £2,055m (HY22: £1,854m) and undiscounted COR of 92.8% (HY222: 91.8%). We saw excellent growth in constant currency of 17% in commercial lines and 8% in personal lines driven by rate increases and strong new business growth.
  • Protection and Health sales were up 23% with strong growth in Health and Individual Protection. VNB was up 18% to £118m (HY22: £100m) driven by higher volumes in Health together with beneficial assumption changes made in H2 2022.
  • Wealth continued to show resilience in challenging market conditions with net flows of £4.3bn (HY22: £5.0bn). Strong growth in Workplace net flows was more than offset by lower net flows in Platform.
  • Retirement sales were up 17% to £3,223m (HY22: £2,762m) with strong growth in Bulk Purchase Annuities (BPAs) and Individual Annuities. VNB was up 2% to £74m (HY22: £72m). The outlook for BPA volumes remains positive with a strong pipeline for the second half.
  • Aviva Investors external net flows remained positive at £0.2bn (HY22: £0.2bn) and reflect the tough market backdrop.

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