Aviva, the UK-based insurance company, has reported a 20% increase in profits for the first nine months of the year, ahead of its planned takeover of rival Direct Line. The company’s interim results, released on Thursday, showed a 20% rise in operating profit to £1.4 billion, driven by cost-cutting and a boost from its investment portfolio.
Aviva’s strong performance has sparked optimism among investors, who are keen to see how the company will fare under its new leadership. Last month, Aviva announced that it would acquire Direct Line, the UK’s largest car insurance provider, in a deal worth £2.3 billion. The takeover is expected to be completed by the end of the year, pending regulatory approval.
The insurance giant’s results have been boosted by a series of measures to reduce costs and improve efficiency. Aviva has cut overheads by £100 million, resulting in a 10% reduction in operating expenses. Additionally, the company has made significant progress in reducing its claims costs, which have fallen by 12% since last year.
Aviva’s investment portfolio has also performed well, with a return of 10.3% in the first nine months of the year. This has helped to boost the company’s profits and reaffirm its commitment to long-term value for shareholders.
Chief Executive Maurice Tulloch said: “Our strong results reflect the hard work and dedication of our employees, as well as the actions we have taken to drive efficiency and reduce costs. We are proud of our progress and are confident in our ability to continue delivering value to our customers and shareholders.”
Aviva’s takeover of Direct Line is expected to provide significant benefits, including increased scale, improved operations, and cost savings. The deal will also provide opportunities for growth and expansion, with Aviva targeting an additional 1 million new customers.
The acquisition is part of Aviva’s strategy to become a top-trending consolidator in the UK insurance market, and the company has assured investors that it has the financial resources and expertise to drive growth and deliver value.
Overall, Aviva’s strong performance and successful acquisition plans have sparked optimism among investors, who are eager to see how the company will build on its success in the coming years. With its commitment to efficiency, cost-cutting, and strategic growth, Aviva is well-positioned to achieve its goals and deliver long-term value to its shareholders.