Aviva boss Amanda Blanc said the insurer was confident of meeting its three-year targets as it declared a 7% hike in its dividend.
Announcing results for the half-year to the end of June, she said the company was making “very good progress” with the integration of Direct Line which it acquired in July last year for £3.7 billion and had improved its profitability.
Group operating profit was up 24% to £1.3bn from £1.1bn last year and ahead of City expectations of a 17.5% rise. The board will pay an interim dividend of 14p per share.
Total group assets under management were £479 billion as at 30 June. The group is seeking to deliver cost savings of £225 million by the end of 2028.
Dame Amanda said: “We have now achieved six consecutive years of excellent financial performance, with much more to come. We also continue to deliver for our shareholders.
“We are making very good progress with the integration of Direct Line. We have quickly improved Direct Line’s profitability, grown price comparison website sales, and maintained excellent levels of customer service. We are well on track to deliver all the financial benefits of the acquisition.
“We are confident that we will meet our three-year financial targets in 2028 and expect 75% of our earnings to be capital-light by that point.
“Beyond this, Aviva is in a great position to sustain strong earnings growth over the longer term, particularly in the high growth areas of Wealth, UK and Canada General Insurance, Global Corporate and Specialty, and Health and Protection.
“Our broad and now expanded range of products, 25 million strong customer base, market leading brand, and the rich and extensive data we have, are major competitive advantages which will drive our future growth.
“Together they represent a significant opportunity for Aviva to apply artificial intelligence to deliver an even better service to customers, meet more of our customers’ needs over their lifetime, and drive even more value for our shareholders. Aviva’s long-term prospects are very bright indeed.”
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