Aviva Operating Profit Rises 14%, Wealth Unit Net Inflows at £5bn

Aviva plc (LON: AV.) shares rose at the start of Wednesday's session after the insurer announced a strong first-half performance, with operating profit surging 14% to £875 million.

The company's robust growth was driven by strong sales across its insurance, wealth, and retirement divisions.

Group CEO Amanda Blanc expressed satisfaction with the results, highlighting the company's leading positions in key markets like workplace pensions and general insurance in the UK and Canada.

She emphasised Aviva's ability to cater to customers' diverse financial needs, with 270,000 new customers and 4.9 million UK customers holding multiple policies.

The company also reported a 10% increase in Solvency II operating own funds generation to £758 million and a 17% rise in Solvency II operating capital generation to £722 million. Cash remittances climbed 16% to £959 million.

Aviva's wealth unit net flows were £5 billion, rising around 16% from the £4,3 billion reported in H1 2023, or 6% of opening assets under management as Platform flows saw a “significant improvement.”

Aviva's assets under management grew to £186 billion, up from £170 billion in FY23.

Looking ahead, Aviva's confidence in its future prospects is underpinned by positive trading conditions in the UK, Ireland, and Canada, as well as the UK's growing attractiveness as an investment destination.

The insurer plans to launch a new venture and growth capital strategy to offer additional investment opportunities for pension customers.

Aviva sees its operating profit reaching £2 billion by 2026, with Solvency II OFG expected to be at £1.8 billion by 2026.