Aviva’s overall performance in the first quarter was reassuringly calm and stable, in marked contrast to the weather and regulatory developments.
Value of new business increased by 45%1 in Europe and 96%1 in Asia, more than offsetting a 22% decline in the UK. The Group combined operating ratio (COR) was 97.7% and IFRS book value increased 6% to 286p per share.
Since our FY13 results in March, we have announced disposals of our US asset management boutique River Road, South Korean joint venture and Turkish general insurance business as well as a significant restructure of our Italian business. Our group is now simpler, easier to manage and more focused, whilst retaining significant benefits of diversification.
Aviva still faces challenges in both the external environment and in the business as we progress our turnaround. The regulatory environment is constantly evolving and soft conditions in certain general insurance lines persist. We are adapting to these issues and look forward to sharing more of our strategy with you at our upcoming analyst day on 9 July.
Mark Wilson, Group Chief Executive Officer, said:
“Aviva’s overall performance in the first quarter was reassuringly calm and stable, in marked contrast to the weather and regulatory developments. The value of new business increased by 13% — the sixth consecutive quarter of year–on–year growth — and our book value grew by 6%.
“We have made further progress simplifying our portfolio of businesses. Since our full year results in March, we have announced disposals of our Turkish general insurance business, US asset management boutique River Road, South Korean joint venture as well as a significant restructure of our Italian business.
“Aviva still faces challenges both in the external environment and in the business as we progress our turnaround. The regulatory environment is constantly changing and soft conditions persist in certain general insurance lines. As a business we remain focused on cash flow, expense efficiency and the clinical allocation of capital to areas where we can maximise returns. There is still much to do.”
