LONDON (Reuters) – Aviva announced on Thursday a share buyback program for 300 million pounds (350.81 million euros) after reporting a 9% increase in its operating profit in 2023, driven by solid performance in its general and health insurance activities.
The British group recorded an operating profit of 1.47 billion pounds, above the expectations of analysts who expected on average 1.43 billion pounds, according to a consensus compiled by the group. The insurer also announced that it was revising its outlook upwards, including its target of an operating profit of 2 billion pounds by 2026.
Aviva also reported an 8% increase in its dividend, to 33.4 pence, in line with analysts’ expectations of 33.3 pence.
Aviva shares listed in London were up around 4% at 09:30 GMT, compared to a decline of 0.41% in the FTSE 100 at the same time.
In a note, KBW describes the results as “reassuring”, reiterating its recommendation of “market performance”.
The group’s fund management unit, Aviva Investors, nevertheless recorded a 16% fall in operating profit, with the group citing “challenging market conditions” in a statement.
The insurer continues to seek “selective” acquisitions to fill gaps in its portfolio or to achieve capital synergies, Chief Executive Amanda Blanc said on a call with reporters.
Amanda Blanc also said Aviva was not interested in Direct Line, after last week’s rejection of a £3.1 billion offer from Belgian insurer Ageas.
(Reporting Carolyn Cohn, Augustin Turpin, editing by Kate Entringer)
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