Aviva hikes dividend payout after profits boost
Insurance giant Aviva has hiked its payout to shareholders today after posting a boost in profits in the first half of the year on the back of growth across the group.
In its half year results this morning, the FTSE 100 firm said operating profits had grown eight per cent to £715m in the first half of the year on the same period last year.
The numbers mark a beat of profit expectations after analysts in a company-compiled consensus poll had forecast operating profit of £701m pounds.
Shareholders are in line for a fresh payout as Aviva hiked its dividend eight per cent to 11.1p in line with guidance, following the results.
It is the latest shareholder giveaway from the insurer which had been under pressure from activist investor Cevian to do just that – before the firm’s impressive recent financial performance forced a retreat.
Boss Amanda Blanc, who has been leading a turnaround for the firm, said today the firm’s “performance and prospects have been transformed from just a few years ago”.
“Aviva is delivering consistently strong and profitable growth. In the first half of 2023 we grew sales, operating profit and dividends for our shareholders,” she added in a statement to markets this morning.
“Our excellent trading momentum is a direct result of the decisions we have taken over the last three years to re-focus Aviva. Today, Aviva has leading positions in growing markets, providing strong resilience in the current economic climate.”
Insurance premiums were up 13 per cent in the UK and Ireland business, with sales rising in its commercial and personal lines businesses.
Aviva’s private health insurance saw sales rocket 58 per cent in the period as it expanded its services to corporate and individual customers.
Whether it will be enough to shore up a share price which has fallen significantly this year is up for debate.
Aviva, like rivals including L&G, has seen a double-digit percentage decline so far in 2023.