Aviva plc 2023 interim results announcement

Authored by Aviva

Strong first half with profitable growth momentum across the GroupGroup operating profit up 8% and Solvency II own funds generation up 26%Confident outlook for 2023, expect to exceed Group medium-term targetsInterim dividend per share up 8% to 11.1p

Amanda Blanc, Group Chief Executive Officer, said:

“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.”

Strong first half results with continued profitable growth momentum

Group operating profit up 8% to £715m (HY22: £661m). Operating EPS up 10% to 19.9p (HY22: 18.1p).Solvency II operating own funds generation (OFG) up 26% to £648m (HY22: £514m). On track to exceed our target of £1.5bn OFG per annum by 2024. Solvency II operating capital generation (OCG) up 9% to £580m (HY22: £532m).Solvency II return on equity 10.8% (HY22: 6.7%).General Insurance gross written premiums (GWP) up 12% to £5,274m (HY22: £4,694m). Undiscounted COR of 94.8% (HY22: 93.8%) and discounted COR of 91.3% (HY22: 92.8%). Operating profit up 29% to £470m (HY22: £364m).Insurance, Wealth & Retirement (IWR) VNB up 7% to £319m (HY22: £297m), and operating value added up 32% to £640m (HY22: £486m).Baseline controllable costs flat at £1,340m (HY22: £1,342m), absorbing c.7% of inflation. With our continued focus on cost efficiency we now expect to deliver our 2024 target of £750m gross cost reduction a year early.Cash remittances of £825m were up 3% (HY22: £798m). On track to exceed our target of >£5.4bn cumulative cash remittances 2022-24.IFRS profit for the period of £377m (HY22: £198m loss).Interim dividend per share up 8% to 11.1p (HY22: 10.3p); £300m buyback executed in first half.