Aviva Group’s profits jumped 13% to £1.3 billion (€1.55 billion) in the first half of 2016.
In the group’s fund management division, its operating profits increased by 48% to £49 million, up from £33 million year-on-year. Higher management fees, gleaned due to increased funds under management, primarily drove the rise. Overall, group profits reached £1.3 billion, compared to £1.1 billion year-on-year. Profit growth was partially offset by “investment to support the development of the business”.
The firm also experienced positive net inflows of £600 million, with assets under management growing 10% to £319 billion as of June 30, compared to £290 billion on December 31 2015.
In a statement, chief executive Mark Wilson emphasised the group’s UK-focused growth and investment, but noted 42% of the firm’s earnings came from outside of the UK. He also commented on the potential interest rate cut from the Bank of England set to be announced later today, stating that Aviva was insulated from external events, and would be resilient in a low interest rate environment.
In March, the group reported “milestone” profits of £105 million over 2015, up 33% from £79 million a year prior, ending a period of “inadequate” performance by the company.
©2016 funds europe
