After announcing its interim results for the year's first half, the Aviva plc (LON: AV) share price edged 2.27% higher as of 8:48 BST. The insurance company noted that its operating profit was up 8% to £715 million from £661 million in a similar period last year. The company’s operating earnings per share (EPS) rose 10% to 19.9p from 18.1p in HY22.
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The company’s CEO, Amanda Blanc, attributed its excellent performance to the transformation implemented over the last three years since she became CEO in July 2020. This is an accurate assessment given that the insurance group has changed its business focus since she took over as CEO.
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Aviva also noted that general insurance premiums in the UK & Ireland increased 13% after recording healthy commercial and personal line business sales. The company noted that its Aviva Zero product has attracted 250,000 new policies since its launch.
The firm noted that its wealth management business also attracted 25% more inflows during the period through its market-leading Workplace business. The company also noted that demand for private health insurance remained relatively high, with sales increasing by 58% as it expanded its services to corporate and individual customers.
Investors cheered Aviva’s decision to increase its dividend payout by 8% to 11.1p per share. The company also raised its full-year 2023 profit growth guidance to between 5% and 7%. Furthermore, Aviva noted that it retained a leading position in growing markets, making its business resilient.
The company’s business appears immune to the inflationary pressures witnessed across the UK and the high interest rates and rate hikes being pursued by the Bank of England. The resilience of the company’s business can be seen in today’s interim results, where most critical financial data was better than expected.
Amanda Blanc, Aviva’s Group CEO, 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.”
Aviva share price.
The Aviva share price edged 2.27% higher to trade at 389.50p, from Tuesday’s closing price of 380.85p.
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