Insurance giant Aviva flags early completion for cost-cutting drive

It said operating profit grew 8 per cent in the first six months of the financial year, reaching £715m.

Bosses said they expect that growth to slow down somewhat, and full-year operating profit will increase somewhere between 5 per cent and 7 per cent, compared with the £1.35bn it made last year.

The business said the first half of the year had benefited from “favourable weather” and a weaker comparison the year before but this will not necessarily repeat in the second six-month period.

Chief executive Amanda Blanc 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.”

She added: “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.”

Earlier this year, activist investor Cevian Capital sold most of its 6.5 per cent stake in Aviva.

Cevian had held shares in the insurance business for three years, and built its holding to a peak last October. It used its voice to put pressure on Ms Blanc, demanding increases in the returns to investors. Aviva met Cevian’s demand earlier in the year. Aviva said on Wednesday that it expects to pay around £915m in dividends this year. It will exceed its solvency and cash remittance targets, it added.

Richard Hunter, Head of Markets at interactive investor, commented “Aviva has delivered a strong set of numbers, with confidence underlined by an upbeat outlook where the positive momentum is expected to continue.

"Its trading over more recent times has been solid despite the various challenges of a weaker investment market, a level of higher claims and the uncertain immediate fate of the UK economy. The group has grasped the nettle of these challenges on any number of fronts.”