Aviva says Irish operation is on the mend
Published 07/03/2014 | 02:30
BRITISH insurance giant Aviva has said progress has been made in turning around its businesses in Italy, Spain and Ireland, with £6m (€7.25m) worth of new business signed up here last year.
But the latest results for the company said there was still significant room for improvement.
It said that significant cost reductions have been made both in the UK and Ireland, with Ireland in the early stages of a turnaround.
The group yesterday recorded a 6pc increase in operating profit for 2013, one year into a financial spring clean of the company's businesses.
The amount of cash remitted to the group by subsidiaries rose 40pc during the year to £1.27bn, Aviva said in an earnings statement, as it proposed a final dividend of 9.4 pence per share.
OPERATING EXPENSES WERE DOWN 7PC AND COST SAVINGS TARGETS FOR THE YEAR HAD COME IN AHEAD OF PLAN, AVIVA SAID, THOUGH IT ALSO NOTED A £60M HIT FROM FLOOD LOSSES IN BRITAIN DURING THE FIRST TWO MONTHS OF 2014.
Chief Executive Mark Wilson acknowledged the group had made progress since he joined at the start of 2013.
Stockbrokers Davy said there was little insight into the performance of the Irish business as Ireland is now lumped in with the UK. "The statement notes progress has been made in its turnaround businesses, including Ireland, but says there remains significant room for improvement," Davy said.
"The Irish business generated £59m operational capital in 2013 (3pc of group) compared with £61m in 2012, and has resumed dividends to the group."