Aviva half year results trebled
interim dividend up

With increased sales and margins boosted, thanks to cust cutting, Aviva half year results announcement on August 5th, 2010, reassured investors that the Group is back on track, whilst also announcing an inflation busting 6 per cent increase in the interim dividend to 9.5 pence.

Sales up, costs and COR down, dividends up!

Overall sales grew for the third consecutive quarter. With cost down, Aviva achieved a 21 per cent increase in operating profits.

Sales of long-term savings products such as retirement policies and life cover were up by 4 per cent to £20.2bn, with strong performance in Britain and Europe - the world's biggest life and pension market.

Aviva regards Europe as its main growth driver over the next five years.

IFRS operating profit of long-term savings products amounted to £1,12b million which was a 20 per cent increase on 1st half year, 2009.

General insurance and health business saw a 4 per cent profits fall to £525 million, while Aviva's fund management side generated operating profits of £56 million.

The all important "Combined Operating Ratio" ("COR") amounted to 97 per cent, beating Aviva's 98 per cent 'meet or beat' target.

COR is an all important insurance industry metrics which measures claims and expenses against premiums. Anything under 100 per cent is regarded as 'profit', i.e. an insurer is taking in more premiums than it's paying out.

Re-confirmation of July's investor presentation

Earlier in July, Aviva had already briefed investors on their commitment to bringing greater clarity to how it generates capital, how that is turned into cash and what it does with that cash.

At the time, chief executive Andrew Moss, commented:

"Our presentation demonstrates the scale and predictability of our capital generation and the diversity of our IFRS profits.

This gives our results real resilience and provides a powerful base from which we pay dividends and invest in the profitable growth of the business."

Based on Aviva half year results, Andrew Moss comfortably announced that strong cash generation from the various parts of the group will allow Aviva to return to “sustainable and growing dividends


1.the above mentioned Dividend Updates are solely examples of a UK listed company's future dividend intentions and is not to be construed as a share recommendation. Neither Early Retirement Investor nor EMAR Publishing are registered as an investment advisor or as an independent financial advisor and do not provide individualised advice

2.the price of shares and investments and the income derived from them can go down as well as up, and investors may not get back the amount they invested

3.where the information consists of pricing or performance data, the data contained therein has been obtained from company reports, financial reporting services, periodicals, and other sources believed reliable

4.data computations are not guaranteed by Early Retirement Investor.com or any of the data providers and may not be complete.

5.The editor or contributors may have an interest in the share mentioned.

6.Dividend yields move up and down. As a company’s share price increases the dividend yield falls. And vice versa: if the share price falls the dividend yield increases.

Return to Rising Dividends for announcements from other companies with an amended dividend policy.

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