Aviva reported its financial results for the fiscal year 2023, with operating profit up 9 per cent to £1,467 million from £1,350 million in the previous year.
Aviva’s results highlights include a 12 per cent surge in Solvency II operating own funds generation to £1,729 million and an 8 per cent rise in Solvency II operating capital generation to £1,455 million.
The company’s Solvency II return on equity reached 14.7 per cent, with cash remittances increasing by 3 per cent to £1,892 million.
General Insurance premiums grew by 13 per cent to £10,888 million, and Aviva’s cost efficiency led to a 1 per cent decrease in baseline controllable costs to £2,734 million.
Additionally, IFRS profit for the year amounted to £1,106 million, prompting the initiation of a new £300 million share buyback program.
Aviva Investors facilitated £2.6 billion of real assets for the company’s annuities business, while Protection and Health sales rose by 16 per cent, and Retirement sales increased by 14 per cent.
Aviva group chief executive officer Amanda Blanc says: “We have made significant progress in 2023. Sales are up, costs are down, and operating profit is 9 per cent higher. Our position as the UK’s leading diversified insurer, with major businesses in Canada and Ireland, is clearly delivering. Today we have raised our total dividend by 8 per cent to 33.4 pence and have now returned more than £9bn in capital and dividends to shareholders over the last three years.
“We have generated strong organic growth, especially in our capital-light businesses, which make up over half our portfolio. General insurance premiums increased by 13 per cent on the back of strong performances in Canada and the UK.
“We are the number one provider of workplace pensions, and this business continues to thrive, with a record £6.9bn of net flows, boosted by winning 477 new schemes during the year. Our private health business is experiencing strong demand from businesses and individual customers and sales grew 41 per cent in 2023. The higher interest rate environment boosted the bulk annuity market, where we secured excellent volumes of £5.5bn at strong margins.
“We are building a clear track record of strong and consistent performance. In each of the last three years we have grown sales, operating profit and our dividend. This momentum gives us increased confidence for Aviva’s future, and so today we are announcing a new £300m share buyback programme, upgrading our dividend guidance to mid-single digit cash cost growth, and upgrading our Group financial targets.
“Aviva is financially strong. We are trading consistently well. Our prospects have never been better. We have leading businesses in growing markets, a fantastic brand, and we are investing substantially to make service better for our 19m customers. All the ingredients are in place to ensure Aviva continues to deliver an outstanding performance for our customers and our shareholders. I’m certain we will.”
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