In reporting its annual results, Aviva said gross inflows were £23bn against redemptions of £28bn. It also said profits for the fund management arm of the insurer were up by 33% to £105m.
The recently launched ‘flagship’ AIMS range, considered by many an attempt to rival Standard Life’s successful GARS funds, had a strong year, adding £1bn in assets to reach £3bn.
Parent company Aviva saw its shares rise over 4% to 479p as the market welcomed the fact it reported profit up 20% to £2.66bn, earnings per share up 2% to 49.2p, and a total dividend up 15% to 20.8p.
Chief executive Mark Wilson said: “2015 was about stability and growth at Aviva, against a background of market volatility and uncertainty. Aviva is now a stronger and more focused business. We have completed the fix phase of our transformation.” He added that the results were “highly satisfactory” in his view.
“A 20% jump in operating profit and 18% increase in the annual dividend both cement Aviva’s recovery under the leadership of Mark Wilson since taking the helm in January 2013 following a difficult spell under his predecessor Andrew Moss,” said Russ Mould, investment director at AJ Bell.
“Aviva has squeezed all of the anticipated cost benefits out of the £6 billion purchase Friends Life a year ahead of schedule and seems to be coping with an era of low interest rates very well, despite all of the negative long-term implications depressed bond yields could have for the insurance industry,” he continued. “The 20.8p dividend equates to a historic dividend yield of 4.2% on a 485p share price and the analyst consensus expects further increases in the payment for 2016 and 2017.”
