Aviva UK premiums/profits fall

Aviva‘s H1 results show UK business fell with net premiums down from £2,298m to £2,241m and operating profit fell from £284m to £268m.

Net written premium £m (2009 in brackets)

• United Kingdom 2,241 (2,298) Operating profit 268 (284)
• Aviva Europe 1,068 (1,061) Operating profit 46 (108)
• Delta Lloyd 707 (677) Operating profit 81 (59)
• North America 996 (889) Operating profit 132 (87)
• Asia Pacific 32 (22) Operating profit -2 (7)
• Total general insurance and health 5,044 (4,947) Operating profit 525 (545)

Aviva chief executive Andrew Moss said: "We achieved a 21% increase in operating profits, grew sales for the third consecutive quarter and improved the group's margin.”

"At a time when predictability of cashflows and capital strength are crucial, Aviva's capital generation stands out, and allows us to invest in the profitable growth of the business and increase the dividend.

"Our first half earnings are tangible evidence of the progress we've made in the last few years - but there's more to do. We will continue to focus on customers and on the disciplined allocation of capital to ensure we grow Aviva profitably. While we remain alert to the macroeconomic environment and risks in financial markets, Aviva has excellent franchises in proven growth markets and we are confident about the future."

Aviva said current year operating profits in UK general insurance increased by 24% to £197million in the first half of the year (HY09: £159m) as a result of its "disciplined approach to underwriting and sophisticated pricing across the business."

Aviva's UK combined operating ratio improved to 98% (H1 2009: 99%).

Click here to read the thoughts of Aviva UK GI chief executive David McMillan.