LONDON (Reuters) – British insurer and asset manager Aviva reported above-expected operating profit on Wednesday, buoyed by strong performance in general insurance and health, and could enter the Lloyd’s insurance market.
Operating profit was 715 million pounds (833.62 million euros) over the period, up 8%. An analyst consensus provided by the firm forecast an operating profit of 701 million pounds.
The strong performance of the insurer, which has operations in Britain, Canada and Ireland, could boost its full-year results by 7%. It previously estimated operating profit growth for the full year at between 5% and 7%.
On the London Stock Exchange, the title Aviva took 2.66% at 8:47 GMT.
“We expect to exceed our financial targets and we are making progress every quarter,” Chief Executive Amanda Blanc said in a statement.
At a press conference on Wednesday, she said the insurer was interested in entering the Lloyd’s insurance market.
Amanda Blanc also claimed that Aviva is considering acquisitions in the commercial insurance space.
This market within Lloyd’s of London was “something that we have studied (…) an area that certainly interests us”.
Commercial insurance accounts for about 50% of Aviva’s general insurance business, she said.
The company said it would pay an interim dividend of 11.1p, up 8% and slightly above expectations of 11p.
Its competitor, the car and home insurer Admiral, reduced its interim dividend by 15% on Wednesday.
In detail, general insurance operating profit rose 29% to £470m as the business benefited from strong performance in its core markets and higher investment income.
For their part, sales of private health insurance increased by 58% for individuals and companies. Aviva pointed out that pressure on public health services has helped drive demand.
By contrast, profit from the insurer’s wealth and pensions business fell 13% to £436 million following additional investment in its wealth management unit.
Aviva Investors recorded external net inflows of £190 million.
(Report Carolyn Cohn, Gaëlle Sheehan, edited by Kate Entringer)
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