Strong first half results demonstrating benefits of diversified business model
• Solvency II operating own funds generation‡ up 46% to £538m (HY213: £369m)
• Operating profit‡,2 up 14% to £829m (HY213: £725m)
• General insurance gross written premiums (GWP) up 6%4 to £4,694m (HY213: £4,366m) with a strong 94.0% COR‡ (HY213: 91.6%)
• UK & Ireland Life sales5 up 4% to £16.8bn (HY21: £16.2bn) with VNB‡ up 13% to £300m (HY21: £265m)
• Solvency II return on equity‡ 10.9% (HY213,6: 7.4%), 12.3% (HY213,6: 8.8% ) excluding Heritage
• Baseline controllable costs‡,7 down 2% to £1,342m (HY213: £1,372m) reflecting continued focus on efficiency
• Cash remittances‡ of £798m (HY213: £1,063m) in line with our expectation and medium term target
• IFRS loss after tax of £633m (HY21: £198m loss), largely reflects adverse market movements, with no impact on capital or cash remittances‡
• Interim dividend per share of 10.3p (HY21: 7.35p), up 40%, in line with our dividend guidance for 2022
Capital position is strong - new share buyback anticipated with full year 2022 results
• Solvency II shareholder cover ratio‡ of 234% (2021: 244%) and centre liquidity‡ (July 22) of £2.7bn (Feb 22: £6.6bn)
• Estimated Solvency II shareholder cover ratio pro forma1 for planned £1bn further debt reduction, pension scheme payment, and the acquisition of Succession Wealth of 213%
• Solvency II debt leverage ratio‡ of 30% (2021: 27%). We expect this to return below 30% as we complete additional deleveraging over time
• Given our strong capital position and prospects, we anticipate commencing a new share buyback programme with our 2022 full year results, subject to market conditions and regulatory approval
• Assuming a new buyback is agreed, its size will be determined by the Board at year end and will take account of the financial position at that time, as well as both the drivers of the capital surplus (including the impact of market movements) and our preference to return surplus capital regularly and sustainably.
https://www.investegate.co.uk/aviva-plc ... 00094764V/
Issued seperately;
Dividend Declaration.
https://www.investegate.co.uk/aviva-plc ... 01054716V/
10.3p ps , ex Div 18 Aug 22, paid 28 Sep 22.
Also posted on Company News here; viewtopic.php?p=521231#p521231
Ian.