Aviv a's shares rose 5 per cent after a strong overseas performance more than offset a lacklustre performance from the life assurer's UK operations. Embedded value operating profits rose 12 per cent to £1.72bn. But profits were wiped out at the pre-tax level as investment income fell sharply. However, the life assurer cheered investors and policyholders with plans to disburse an excess £1bn of capital built-up in its with-profit funds, with eligible customers due for an average payout of £1,000 each.
UK life and pension sales grew just 1 per cent to £5.86bn but, on the general insurance side, operating profits rose from £269m to £305m, bringing the combined ratio (of claims to premiums) back to a profitable 98 per cent. That reflected a return to normal weather conditions after storms hit last year's first-half profits by £235m. Meanwhile, progress on the life side outside the UK was impressive. Life and pension sales in North America grew 28 per cent to £2.21bn, while sales in the Asia Pacific region rose 20 per cent to £784m.
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| AVIVA (AV.) | ||||
|---|---|---|---|---|
| ORD PRICE: | 491p | MARKET VALUE: | £13,049m | |
| TOUCH: | 490-492p | 12-MONTH HIGH: | 784p | LOW: 466p |
| DIVIDEND YIELD: | 7.0% | PE RATIO: | 34 | |
| NET ASSET VALUE: | 434p | EMBEDDED VALUE: | 703p | |
| Half-year to 30 Jun | Premium income (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 11.5 | 1,198 | 31.0 | 11.9 |
| 2008 | 12.3 | -17.0 | -3.90 | 13.1 |
| % change | +7 | - | - | +10 |
Ex-div: 24 Sep Payment: 17 Nov | ||||
