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Aviva releases H1 2023 profit guidance, growth estimates
Global Banking & Finance Review®
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LONDON (Reuters) – Aviva said on Wednesday it expected to deliver around 700 million pounds ($907.20 million) in group operating profit in the first half of 2023, with full-year profit estimated to grow by 5-7% year-on-year.
LONDON (Reuters) – Aviva said on Wednesday it expected to deliver around 700 million pounds ($907.20 million) in group operating profit in the first half of 2023, with full-year profit estimated to grow by 5-7% year-on-year.
In an update to investors incorporating the restatement of certain 2022 financials required under accounting standard IFRS 17, the British insurer said its full year 2022 business unit operating profit was now 1.9 billion pounds, 15% lower than under IFRS 4 and consistent with previous guidance.
Aviva said the change principally reflected accounting changes to its annuities and protection businesses, with new business profit now being deferred over the lifetime of a contract.
It added that the new accounting standards would have “no impact to strategy, capital generation, dividend guidance, or capital return outlook.”
“There is no impact on our dividend guidance for 2023 of around 915 million pounds, with low-to-mid single digit growth in the cash cost of the dividend thereafter,” the company said.
($1 = 0.7716 pounds)
(Reporting By Sinead Cruise, Editing by Iain Withers)
Operating profit is the profit a company makes from its core business operations, excluding any income derived from non-operational activities. It is calculated by subtracting operating expenses from gross profit.
IFRS 17 is an International Financial Reporting Standard that sets out the principles for the recognition, measurement, presentation, and disclosure of insurance contracts. It aims to provide more transparency and comparability in financial statements.
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. Dividends can be issued in cash or additional shares and are typically paid on a regular basis.
Capital generation refers to the process of creating financial resources for a company, typically through profits, investments, or financing activities. It is crucial for funding operations and growth.
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