Aviva posts 8% rise in half year operating profits

Interim figures show improved BPA volumes but decline in revenues at Aviva Investors

Jonathan Stapleton
clock • 2 min read
Aviva chief executive Amanda Blanc
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Aviva chief executive Amanda Blanc

Aviva has released its interim results for the six months to 30 June - showing an 8% rise in group operating profits and positive trading across many of its businesses.

The insurer's half-year results, published today (16 August), said annuity and equity release performance improved in the period - mainly reflecting higher investment results from higher yields. Aviva said bulk purchase annuity (BPA) volumes were £2.4bn in the first half against £1.9bn during the same period of last year - adding that volumes to date this year were now £3.4bn.

Aviva Investors posted a decline in operating profit from £14m in the first half of last year to £5m in the first six months of this year.

It said these results were driven by lower revenue partly offset by improved efficiency reflecting cost reduction initiatives - adding that revenues for the first half were £167m, 12% lower that the first half of last year.

It said this was the result of the impact of weak investment markets on average assets under management, with the most significant impact on credit. Aviva Investors said external net flows remained positive at £190m.

Aviva chief executive Amanda Blanc commented: "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."

Aviva's results come a day after Legal & General (L&G) and Just Group published their interim results for the first half of 2023 - both revealing strong growth in pensions risk transfer business.

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