Aviva beats profit expectations as Direct Line and wealth management drive growth
Its Direct Line deal made Aviva Britain’s largest multiline insurer
British insurer Aviva reported a first-half profit of £1.33 billion (US$1.79 billion) on Friday, surpassing expectations as its merger with motor insurer Direct Line and its growing wealth-management division boosted earnings. The company's chief executive, Amanda Blanc, has focused on scaling operations in a competitive market, positioning Aviva as Britain's largest multiline insurer following the Direct Line acquisition.
Aviva's operating profit for the six months ending June 30 increased by 24% compared to the same period last year, exceeding the £1.26 billion forecast by analysts. The insurer aims to achieve three-year financial targets, such as 11% compound annual growth in operating earnings per share through 2028 and a return on equity above 20%.
General insurance gross written premiums grew by 29% to £8.1 billion, surpassing the expected £7.8 billion. Net inflows in the wealth-management business rose by 32% to £7.6 billion. Aviva also increased its interim dividend by 7% to 14 pence per share.
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