The Aviva plc (LON: AV) share price edged 4.10% higher after the insurance company released its full-year 2022 results and announced a new £300 million share buyback program as part of its commitment to return excess cash to its shareholders.
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Investors cheered the news, as evidenced by the rally in Aviva shares. While the percentage gains might seem low compared to other companies, the Aviva share price chart shows this was its largest move in months. The company has a high share price, which limits its percentage gains.
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Aviva’s operating profits surged 35% to £2.21 billion from the £1.63 billion recorded in 2021. The company registered growth in all its business divisions, including 15% growth in the new business generated by its life insurance business to £767 million from £668 million in 2021.
The insurance group also registered an 8% increase in the gross underwritten premiums by its general insurance division to £9.75 billion compared to the £8.81 billion. The company attributed its impressive performance to continuous investments to make it easier for customers to work with it.
Aviva’s investments have paid off after growing its UK customer numbers to 15.5 million. The insurance company’s new £300m share buyback program takes the total capital returned to shareholders since 2021 to £5 billion.
The company also lowered its operating costs as part of its ongoing restructuring program started by Amanda Blanc after taking over the CEO role in July 2020.
Aviva’s Group CEO Amanda Blanc said: “We are making excellent progress at Aviva. Operating profits and dividends are growing, and we have strong trading momentum despite significant market volatility. We have radically simplified Aviva, we are financially strong, and we are utterly focused on transforming and growing the business.
Adding:
“The diversified model we have built at Aviva has proved its worth, providing clear benefits for customers and shareholders and driving our great results last year. Whilst I am pleased with what’s been accomplished over the past twelve months, I am clear there is significantly more value which Aviva can and will deliver in 2023 and beyond.”
*This is not investment advice.
Aviva share price.
The Aviva share price edged 4.10% higher to trade at 467.50p, from Wednesday’s closing price of 449.10p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.