Insurer Aviva Plc (AV,AV.L) Thursday said pro forma value of life new business, a key measure of growth, increased 18 percent in its first quarter, driven mainly by solid growth in developed markets of UK and France.
In an interim management statement, the company said value of life new business, or VNB, on a pro forma basis, increased to 191 million pounds from 162 million pounds in the prior year. Pro forma VNB excluded US Life, Aseval, Russia, Malaysia, Sri Lanka, Ark Life, Czech Republic, Hungary and Romania Life.
In UK Life, value of new business climbed 33 percent, benefited by actions on pricing and expenses. In France, value of new business improved 11 percent from a year ago. In the growth markets of Turkey and Asia, VNB grew by 67 and 29 percent, respectively.
Mark Wilson, chief executive officer of the company said, "Our key measure of growth - value of new business - has increased by 18% driven by actions to improve profitability in UK Life and growth in our Asian business. In general insurance, our profitability was stable with a COR of 96% with a strong result in Canada."
The company noted that it is on track to deliver its cost savings target of 400 million pounds.
IFRS net asset value per share increased to 295 pence from 278 pence a year earlier. On a pro forma basis, net asset value per share improved 9 percent to 302 pence. The pro forma IFRS net asset value reflected the proceeds of the Aseval transaction with Bankia and the sale of its business in Malaysia.
Aviva said the prior-year IFRS NAV of 278 pence excluded the proceeds of the Aseval transaction with Bankia and the sale of its business in Malaysia.
Last month end, Aviva had received 608 million euros in cash from Nationalized Spanish bank Bankia S.A. (BNKXF.PK) following settlement and transfer of its entire holding in Spanish joint venture Aseval to Bankia. Group combined operating ratio was 96 percent, unchanged from last year.
In London, AV.L is currently trading at 334.36 pence, up 11.26 pence or 3.48 percent, on a volume of 7.2 million shares.
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