Aviva Issues Statement on Interim Results

LONDON, England, Aug. 8 -- Aviva, a provider of insurance, savings and investment products, issued the following statement by Executive Officer Maurice Tulloch on interim results:

"Aviva has strong foundations to build upon but there is much to do to improve our performance.

"Our performance is mixed, with operating earnings per share up 2%. We have delivered strong general insurance results with a combined ratio of 95.9%. In life insurance and asset management, operating profits declined due to challenging market conditions and the absence of a longevity reserve release.

"In June we announced a plan to improve Aviva's performance and deliver an excellent experience for our customers. We have made a quick start; separating management of our life and general insurance businesses in the UK and bringing together UK Digital and UK General Insurance.

"Our financial position remains strong with a capital surplus of pound sterling11.8 billion and pound sterling2.3 billion of cash at group. Maintaining such a healthy capital surplus is important as we continue to reduce our debt levels and safely navigate uncertain market conditions. Aviva is ready and resilient.

"In line with our progressive dividend policy, the Board of Directors has increased the interim dividend by 3% to 9.50 pence per share.

"I am working with the Board to refresh Aviva's strategy and we have decided to review the strategic options for our Asian businesses. Aviva's businesses in Asia have excellent growth and earnings potential and we are considering a range of options to help these businesses reach their potential.

"I am confident that our combination of excellent insurance skills, a strong balance sheet and world class distribution and partners provide a strong foundation for Aviva's future success."

Profit

* Operating EPS1,# up 2% to 27.3 pence (HY18: 26.8 pence)

* Operating profit2,# up 1% to pound sterling1,448 million (HY18: pound sterling1,438 million)

* IFRS profit after tax pound sterling1,180 million (HY18: pound sterling376 million)

* Basic EPS 28.2 pence (HY18: 7.9 pence)

Dividend

* Interim dividend per share up 3% to 9.50 pence (HY18: 9.25 pence)

Capital

* Solvency II cover ratio3, 194% (2018: 204%)

* Solvency II capital surplus3 pound sterling11.8 billion (2018: pound sterling12.0 billion)

* Operating capital generation# pound sterling0.8 billion (HY18: pound sterling0.9 billion)

* IFRS net asset value per share 432 pence (2018: 424 pence)

Cash

* Cash remittances# pound sterling1,582 million (HY18: pound sterling1,493 million)

* Holding company liquidity pound sterling2.3 billion4 (February 2019: pound sterling1.6 billion)