“Aviva still has issues” says boss as profits rise
Aviva has reported a six per cent rise in operating profit for 2013, to £2bn.
Chief executive Mark Wilson said the businesses’ turnaround is “intensifying”, adding, however, that he wants to “guard against complacency”.
Shares have, however, leapt over eight per cent in trading this morning.
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The London-based insurer saw cash flows up 40 per cent at £1.3bn, and operating expenses down seven per cent at £3bn.
Its proposed a final dividend of 9.4 pence per share.
But Aviva did take a £132m hit from so-called "improper" trading activity by two employees.
And the floods that soaked Britain this winter have resulted in £60m of losses, it said – although that's in line with the long-term average.
Operations in Poland, Turkey and Asia grew 49 per cent collectively, contributing 21 per cent towards value of new business which, the firm said, is up 13 per cent at £835m.
Ongoing UK operations grew by four per cent to £435m in 2013.
Wilson joined Aviva at the start of last year, following the shareholder uprising that saw his predecessor leave the business.
He said today that the company’s “simpler, more focused and better managed”, but added:
Aviva still has issues to address. Have we made progress? Yes, some. Is it a little faster than anticipated? Probably. Have we unlocked the full potential at Aviva? Not yet.