Investors reward return to profit and cost-cutting progress
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.”
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
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