Solid start to the year for struggling insurer
Shares in Aviva jumped more than 7% yesterday following solid first quarter performance from the troubled insurance company.
The value of new business at the company rose by 18% in the first three months of the year to £191m, the firm said. The growth was driven by increased demand in Asia and Britain.
Aviva also revealed that it has reduced its costs to £769m: a reduction of 10% on the same period last year.
Chief executive Mark Wilson (pictured) said the firm was on track to reach its target of £400m of annual savings by the end of the year.
The results follow an announcement earlier this month that the firm plans to cut 2,000 jobs, which is equivalent to 6% of its global workforce, in the next six months. At least half of the job losses will come from the UK.
Restructuring costs, including redundancy payouts, reached £54m in the first quarter.
Wilson said: “Progress so far has been satisfactory and there is a great deal more we need to do for our shareholders.”
Wilson joined Aviva at the start of this year after former chief executive Andrew Moss was forced out by an investor revolt prompted by spiralling costs and poor share price performance.
In March, the firm cut its dividend by more than a quarter, delivering another blow to shareholders.
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