| Aviva plc 2024 interim results announcement |
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Excellent first half – consistently delivering
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Double-digit growth in operating profit, cash remittances and capital generation
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Confident outlook for 2024 and beyond
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| Operating profit1 |
Solvency II OFG |
Undiscounted COR |
Solvency II cover ratio3 |
2024 interim dividend |
| £875m |
£758m |
95.4% |
205% |
11.9p |
| +14% |
+10% |
+0.6pp |
(2)pp |
+7% |
| HY232: £765m |
HY232: £686m |
HY23: 94.8% |
FY23: 207% |
HY23: 11.1p |
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| Amanda Blanc, Group Chief Executive Officer, said: |
| “Sales are up. Operating profit is up. The dividend is up. Our plan to deliver more for customers and shareholders is working well. |
| “We have achieved another six months of excellent trading. We have generated growth right across Aviva, thanks to our leading positions in attractive markets such as workplace pensions and general insurance in the UK and Canada. |
| “Aviva continues to benefit significantly from the balanced and diversified business we have built and lead. We are the only UK insurer which can look after customers’ entire insurance, wealth and retirement needs, and this is paying off. We have 270,000 more customers this year and 4.9 million UK customers have more than one policy with us. |
| “We are the number one provider of workplace pensions and are planning to launch a new venture and growth capital strategy. This will open up new investment opportunities for our pension customers and could help unlock billions of pounds of investment into unlisted growth companies. |
| “We remain very positive about Aviva’s prospects. Trading conditions across the UK, Ireland and Canada, are excellent. And the UK market, our largest, is highly attractive and growing. We see many reasons to invest here, including greater economic stability and political certainty. This encouraging backdrop - and Aviva's continued strong financial performance - means we are increasingly confident we can deliver even more for our customers and shareholders.” |
| Strong first-half results with continued profitable growth momentum |
- Group operating profit up 14% to £875m (HY23: £765m).
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- Solvency II operating own funds generation (Solvency II OFG) up 10% to £758m (HY23: £686m). Underlying Solvency II OFG up 27% to £768m (HY23: £605m).
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- Solvency II operating capital generation (Solvency II OCG) up 17% to £722m (HY23: £618m). Underlying Solvency II OCG up 42% to £739m (HY23: £522m).
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- Solvency II return on equity 12.4% (HY23: 11.5%).
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- Cash remittances up 16% to £959m (HY23: £825m).
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- Insurance, Wealth & Retirement (IWR) sales up 12% to £19.7bn (HY23: £17.6bn).
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- General Insurance premiums up 15%5 to £6,005m (HY23: £5,274m). Undiscounted COR of 95.4% (HY23: 94.8%) and discounted COR of 91.5% (HY23: 91.3%).
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- IFRS profit for the period of £654m (HY23: £415m).
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| Capital position is strong and resilient |
- Solvency II shareholder cover ratio of 205% (FY23: 207%) and centre liquidity (Jul 24) of £1.5bn (Feb 24: £1.9bn).
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- Solvency II debt leverage ratio of 31.1% (FY23: 30.7%) or 28.8% pro forma for the Tier 2 notes redeemed on 3 July 2024
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- Interim dividend per share up 7% to 11.9p (HY23: 11.1p)
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- £300m share buyback was executed in the first half, and we anticipate further regular and sustainable returns of capital in the future.
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| Continued capital-light growth momentum |
- UK&I General Insurance premiums up 18% to £3,809m (HY23: £3,219m) and undiscounted COR of 95.8% (HY23: 96.3%). UK personal lines premiums grew by 30% driven by strong pricing discipline in the inflationary environment and new propositions. UK commercial line premiums grew 10% due to pricing actions and new business growth.
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- Canada General Insurance premiums up 10% to £2,196m (HY23: £2,055m) and undiscounted COR of 94.7% (HY23: 92.8%). We saw excellent growth of 14% in personal lines and 6% in commercial lines driven by pricing actions and strong new business growth.
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- Protection sales were up 49% following the completion of the AIG UK protection (‘AIG’) acquisition in April and Health in-force premiums were up 10%.
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- Wealth net flows of £5.0bn (HY23: £4.3bn) are up 16%, or 6% of opening Assets Under Management (AUM) as Platform flows see significant improvement. AUM grew to £186bn (FY23: £170bn).
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- Retirement sales of £3,036m (HY23: £3,223m) were lower, driven by contraction of the Equity Release market and BPA sales of £2.3bn (HY23: £2.4bn). As of today, volumes for completed BPA schemes have risen to £4.1bn. VNB was up 41% to £105m reflecting improved margins of 3.4% (HY23: 2.3%).
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- Aviva Investors is a core enabler of growth for the Group. In the first half it originated £1.4bn of real assets for our annuities business, and c.70% of Workplace net flows went into Aviva Investors funds. External net flows remained positive at £0.3bn (HY23: £0.2bn).
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| Group financial performance |
| General Insurance premiums |
Solvency II OCG |
IFRS profit for the period |
| £6,005m |
£722m |
£654m |
| +15% |
+17% |
+58% |
| HY23: £5,274m |
HY232: £618m |
HY232: £415m |
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| Cash and liquidity |
| Cash remittances |
Centre liquidity |
| £959m |
£1,528m |
| +16% |
(19)% |
| HY23: £825m |
Feb 24: £1,891m |
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| Confident outlook |
| Our positive momentum continued in the first half of 2024 with a strong set of results. We remain confident in meeting the Group targets outlined at our full-year 2023 results presentation: |
- Operating profit: £2bn by 2026.
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- Solvency II OFG: £1.8bn by 2026.
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- Cash remittances: > £5.8bn cumulative 2024-26.
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| Today, we’re already majority capital-light, and we’re continuing to accelerate by investing in the business and through targeted M&A. Delivering on our plans will see us close to 70% capital-light by 2026 on an operating profit basis. |
| In General Insurance we remain focused on pricing appropriately. Over the second half of the year, we expect the underlying Group COR to continue to benefit from the pricing actions taken in 2023 and so far in 2024. |
| In our Health business, we anticipate further growth in the second half, while Protection growth is expected to moderate. In Wealth we expect our strong growth momentum to continue. |
| We anticipate completing our three-year ambition of £15-20bn of BPA volumes by writing £7-8bn this year. |
| We remain committed to delivering for our shareholders. We paid a total dividend of £906m for 2023 and our dividend guidance for mid-single-digit growth in the cash cost of the dividend remains. Our intentions for further regular and sustainable returns of capital remain unchanged. |
| For the full document click the link below: |
| Aviva plc |
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