Floods also dampen Aviva profit
British insurer Aviva has also borne the brunt of recent flooding in the UK, posting an 8% drop in first-half profit.
Aviva, the world’s fifth-largest insurer, saw its total operating profit dwindle to £1.54 billion ($3.69 billion) after a £235 million ($563.9 million) hit from insurance claims in the first six months of this year.
The company’s profit from UK general insurance and health was cut in half by the floods, with operating profit falling to £284 million ($681.5 million) from £566 million ($1.36 billion) compared with the previous corresponding period.
Aviva also foreshadowed outstanding flood claims of £165 million ($396.2 million) in the second half.
Apart from the UK losses, Aviva’s overall result was solid, with worldwide sales rising 25% to £19.29 billion ($46.3 billion) and life insurance profit up to £1.25 billion ($3 billion) from £1.01 billion ($2.42 billion).
Return on equity has fallen to 11.6% from 14% in the first half of 2006.
Group CEO Andrew Moss says future earnings growth will come from southern, central and eastern Europe, as well as Asia.
“Substantial weather-related losses in the UK have been countered by strong growth across our life and asset management businesses. The US has continued to be our star performer.”
Aviva, the world’s fifth-largest insurer, saw its total operating profit dwindle to £1.54 billion ($3.69 billion) after a £235 million ($563.9 million) hit from insurance claims in the first six months of this year.
The company’s profit from UK general insurance and health was cut in half by the floods, with operating profit falling to £284 million ($681.5 million) from £566 million ($1.36 billion) compared with the previous corresponding period.
Aviva also foreshadowed outstanding flood claims of £165 million ($396.2 million) in the second half.
Apart from the UK losses, Aviva’s overall result was solid, with worldwide sales rising 25% to £19.29 billion ($46.3 billion) and life insurance profit up to £1.25 billion ($3 billion) from £1.01 billion ($2.42 billion).
Return on equity has fallen to 11.6% from 14% in the first half of 2006.
Group CEO Andrew Moss says future earnings growth will come from southern, central and eastern Europe, as well as Asia.
“Substantial weather-related losses in the UK have been countered by strong growth across our life and asset management businesses. The US has continued to be our star performer.”