Aviva, a leading insurance and financial services provider, reported a strong fiscal year, with profits surging to £1.77 billion, exceeding analysts’ expectations. The company’s pre-tax profits increased by 20% compared to the previous year, driven by significant growth in its wealth and retirement division.
Within its workplace business, Aviva secured 477 new schemes, with notable developments in its retirement business, including a 33% increase in sales to £9.4 billion. This growth was fuelled by record bulk purchase annuity (BPA) volumes and higher customer demand for individual annuities due to the rising interest rate environment. Notably, the company completed 61 BPA transactions, including three deals worth over £1 billion and a £1.7 billion buy-in with the National Grid pension scheme.
Aviva’s insurance business also showed strong growth, with protection sales surging 42% following the completion of the AIG Life acquisition in April. The company reported double-digit growth in its health insurance in-force premium, and anticipates further growth in the coming years.
Aviva’s CEO of Insurance, Wealth, and Retirement, Doug Brown, hailed the company’s performance, saying, “We are delivering consistent year-on-year growth, with a fantastic set of results for 2024. We continued to grow across Insurance, Wealth, and Retirement and I was delighted to see our strategy gain even more momentum over the course of the year.” Overall, Aviva’s strong performance is a testament to the company’s successful strategy and its ability to adapt to changing market conditions.