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Aviva profits up; U.S. business on target to double

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British insurer Aviva plc’s operating profits rose 1 percent last year, aided by record sales in the United States with its Des Moines-based AmerUs Group Inc. acquisition, which offset a loss of 475 million pounds related to bad weather in Britain.

The company’s operating profit, on a European embedded value (EEV) basis, was 3.286 billion pounds, compared with 3.25 billion pounds a year ago. Operating profits for its general insurance unit were down 39 percent to 1.03 billion pounds for the year. Meanwhile, its life business operating profits rose 35 percent and long-term-savings new business sales rose 25 percent.

In North America, long-term-savings sales were up 39 percent to 3.6 billion pounds and its life EEV operating profit was up 29 percent to 255 million pounds. This was aided in part by a $45 million in cost savings from its AmerUs integration.

“We remain optimistic about our growth prospects in the U.S.,” said Aviva Group Chief Executive Andrew Moss, “and remain on track to double new business sales within three years of the acquisition of AmerUs while maintaining margins.”

The company also announced a new goal to double statutory earnings by 2012, which will be achieved by strong, profitable growth across its business units, especially in its life business, and through 350 million pounds in cost and efficiency savings. The company also will explore new markets and growth opportunities that can be financed using internal resources.