Aviva PLC 2020 Pretax Profit Falls on Lower Investment Income
March 04 2021 - 3:11AM
Dow Jones News
By Ian Walker
Aviva PLC on Thursday reported a 32% fall in pretax profit for
2020 after booking lower investment income and said it expects to
be able to make substantial returns to shareholders after a number
of disposals over the year.
The FTSE 100-listed insurer made an IFRS pretax profit for the
year ended Dec. 31 of 2.61 billion pounds ($3.64 billion) compared
with GBP3.82 billion for 2019. Gross written premiums fell to
GBP29.02 billion from GBP29.71 billion.
Adjusted operating profit--one of the company's preferred
metrics, which strips out exceptional and other one-off items--fell
to GBP3.16 billion from GBP3.18 billion for 2019.
It ended the year with a Solvency II ratio--a measure of capital
strength--of 202% compared with 195% at Sept. 30 and 206% at Dec.
31, 2019. Its solvency II capital surplus stood at GBP13.0 billion,
up from GBP11.8 billion at Sept. 30.
The insurer declared a final dividend of 14.0 pence a share,
taking the total payout to 21.0 pence. It had guided for a final
dividend for the year of 14.0 pence a share and said it expects to
grow future dividends by low to mid-single digits over time. No
final dividend was paid for 2019 due to the coronavirus pandemic,
but a second interim dividend of 6 pence a share was paid during
the third quarter of 2020.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
March 04, 2021 02:56 ET (07:56 GMT)
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