Aviva 9-Month New Business +25%; Maintaining Momentum
October 29 2015 - 4:08AM
Dow Jones News
By Ian Walker
LONDON--Aviva PLC (AV.LN) Thursday reported a 25% rise in new
business in the first nine months of the year, the eleventh
consecutive quarter of growth, and said it is maintaining the
momentum of the group's transformation.
The world's sixth-largest insurance company measured by net
premium income said the acquisition of Friends Life is everything
it expected it to be. The company has achieved 91 million pounds
($139.53 million) of savings against its target of GBP225
million.
"At the same time our U.K. Life business continues to grow and
our customers are responding positively to the full range of
pensions freedoms we offer," the company said.
Total new business rose to GBP823 million for the nine months
ended Sept. 30, compared with GBP685 million in the same period a
year earlier. In the U.K., it rose 36% to GBP404 million.
Aviva, which has around 34 million customers across 16
countries, added that its economic capital surplus--a measure of
financial stability--slipped to GBP10.1 billion, from GBP10.8
billion at June 30, which it blamed on recent market volatility.
However, its net asset value rose 2% to 387 pence a share, from 380
pence at June 30, 2014.
In June, Aviva completed its GBP5.6 billion purchase of Friends
Life Group Ltd., creating the U.K.'s largest insurance, savings and
asset-management company.
Aviva has also been selling off businesses as part of its
strategy to focus on markets where it has scale or a sustainable
competitive advantage to maximize return on capital. It has sold
its 47% stake in South Korean business Woori Aviva Life Insurance
and U.S. equity manager River Road Asset Management LLC, both for
undisclosed sums.
The firm has also restructured its Italian businesses in deals
with UBI Banca and UniCredit SpA.
Shares closed Wednesday at 479 pence and are currently down over
7% over the past 12 months.
-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
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(END) Dow Jones Newswires
October 29, 2015 03:53 ET (07:53 GMT)
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