Aviva shares jump 7.6% after H1 performance

Shares in insurance group Aviva jumped 7.6% in yesterday’s trading, after investors were encouraged by the company’s first-half performance and progress on its turnaround strategy.

London-listed Aviva’s shares closed at 399p yesterday, compared with Wednesday’s closing price of 370.80p.

Aviva reported a turnaround in fortunes for the first half of 2013. The company made a profit after tax of £776m, compared with the loss of £624m it reported in the same period of 2012.

Progress on cutting expenses

The company also revealed progress on its plan to reduce annual expenses by £400m. Operating expenses in the first half of 2013 were down 9% at £1.5bn (H1 2012: £1.7bn).

Aviva chief executive Mark Wilson said yesterday, after the release of the results:  “At the start of the year, I said we wanted Aviva to be as predictable as a Swiss clock. At this stage, we are not quite that precision instrument, but I do think we are making some progress.

“I would characterise the results as satisfactory – quite simply we have done what we said we would do.”