Aviva announces 2019 half year results

Aviva CEO Maurice Tulloch

Aviva plc 2019 half year results.

Maurice Tulloch, Chief Executive Officer, said:

"Aviva has strong foundations to build upon but there is much to do to improve our performance. 

"Our performance is mixed, with operating earnings per share up 2%. We have delivered strong general insurance results with a combined ratio of 95.9%. In life insurance and asset management, operating profits declined due to challenging market conditions and the absence of a longevity reserve release.

"In June we announced a plan to improve Aviva’s performance and deliver an excellent experience for our customers. We have made a quick start; separating management of our life and general insurance businesses in the UK and bringing together UK Digital and UK General Insurance.

"Our financial position remains strong with a capital surplus of £11.8 billion and £2.3 billion of cash at group. Maintaining such a healthy capital surplus is important as we continue to reduce our debt levels and safely navigate uncertain market conditions. Aviva is ready and resilient.

"In line with our progressive dividend policy, the Board of Directors has increased the interim dividend by 3% to 9.50 pence per share.

"I am working with the Board to refresh Aviva’s strategy and we have decided to review the strategic options for our Asian businesses. Aviva’s businesses in Asia have excellent growth and earnings potential and we are considering a range of options to help these businesses reach their potential.

"I am confident that our combination of excellent insurance skills, a strong balance sheet and world class distribution and partners provide a strong foundation for Aviva’s future success."

Profit

Operating EPS1,‡# up 2% to 27.3 pence (HY18: 26.8 pence)

Operating profit2,‡# up 1% to £1,448 million (HY18: £1,438 million)

  • IFRS profit after tax £1,180 million (HY18: £376 million)
  • Basic EPS 28.2 pence (HY18: 7.9 pence)

Dividend

  • Interim dividend per share up 3% to 9.50 pence (HY18: 9.25 pence)

Capital

  • Solvency II cover ratio3,‡ 194% (2018: 204%)
  • Solvency II capital surplus3 £11.8 billion (2018: £12.0 billion)
  • Operating capital generation# £0.8 billion (HY18: £0.9 billion)
  • IFRS net asset value per share 432 pence (2018: 424 pence)

Cash

  • Cash remittances‡# £1,582 million (HY18: £1,493 million)
  • Holding company liquidity £2.3 billion4 (February 2019: £1.6 billion)

Notes

  • Denotes Alternative Performance Measures (APMs) which are key performance indicators of the Group used to measure our performance and financial strength. Further details of this measure are included in the ‘Other information’ section of the Analyst Pack.
  • #Denotes key performance indicators which are used by the Group to determine or modify remuneration. Further details of this measure are included in the ‘Other information’ section of the Analyst Pack.
  • 1This measure is derived from the Group adjusted operating profit APM. Further details of this measure are included in the ‘Other information’ section of the Analyst Pack.
  • 2Group adjusted operating profit is a non-GAAP Alternative Performance Measure (APM) which is not bound by the requirements of IFRS. Further details of this measure are included in the ‘Other information’ section of the Analyst Pack.
  • 3The estimated Solvency II position represents the shareholder view as defined in section 8.i of the Analyst Pack.
  • 4Stated as at end July 2019.

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