“Aviva’s results are simple and clear cut,” explained group CEO Mark Wilson, “more operating profit, more capital, more cash, more dividend. And there is more to come.”
Operating profit of the business as a whole surged 12% to £3bn, as every other division within the life company, including fund management, proved profitable over the period.
Aviva Investors saw its operating profit increase 32% to £139m and took in 12% higher revenue at £506m.
Unlike competitor Standard Life’s Global Absolute Return Strategies, the Aviva Investors Multi-Strategy enjoyed healthy sales, driving the value of new business in Aviva Investors 81% higher to £29m.
AIMS’ assets under management currently stand at £9bn, from £3bn in 2015, despite only just entering the market in the middle of 2014.
In another treat to shareholders, Aviva announced it will be actively planning to return capital to shareholders in 2017 and concentrate on debt reduction.
“The numbers speak for themselves,” Wilson continued.
“Fund management delivered a breakout year with strong positive net flows and operating profit up 30%.
“General insurance is growing, with operating profit up 17%, and in UK digital we have doubled online registrations to five million. We are becoming a digital disruptor for the benefit of our customers.”
Aviva’s shares soared to 6.5% to 544p Thursday morning, the highest level its shares have been trading at since May 2015.
On the other hand, Old Mutual’s chief executive Bruce Hemphill struck a more conciliatory tone in his group’s final results.
“We are delivering on our promises: we sold down part of our stake in OM Asset Management, materially reduced our debt, cut head office costs and made significant strides in preparing the businesses for independence.
“While the macroeconomic conditions have been tough in 2016, our businesses have performed resiliently, with a stronger performance in the second half, demonstrating the underlying strengths of the franchises.”
