Profit surge for Aviva
AvivaAustralia has announced a $70.8 million profit result for the six-month period ending June 30, 2007, a 46 per cent increase on last year’s result of $48.4 million.
Gross inflows to its Navigator platform jumped 67 per cent to $2.94 billion, while net inflows doubled to $1.78 billion, bringing Aviva’s total funds under administration in Australia to $27.2 billion. Wealth protection sales increased by 58 per cent to $32 million.
Aviva chief executive officer Allan Griffith said the strong results indicated the company’s commitment to its customers, and attributed much of its new business to the implementation of Aviva’s Riskfirst technology.
“Our leading position in super has allowed us to benefit from the ‘simpler super’ changes with a surge in inflows to our Navigator platform,” Griffith said.
“On the protection side of the business, our Riskfirst online applications account for 25 per cent of new business just three months after launch — a clear demonstration that this is breakthrough technology that sets Aviva apart.”
Griffith said Aviva was still looking to expand through future acquisitions and cited last year’s 25 per cent acquisition of Queensland-based dealer group, Infocus and 23.5 per cent ownership of Australia’s largest dealer group Professional Investment Services.
“These strong business results show our strategy is delivering rapid organic growth. At the same time, Aviva continues to look for suitably priced acquisitions,” he said.
Aviva also announced a 25 per cent increase in worldwide sales to $46.88 billion, as well as a 24 per cent increase in life European Embedded Value (EEV) operating profit.
Recommended for you
In this week’s episode of Relative Return Insider, AMP chief economist Shane Oliver joins the show to dissect the ongoing government economic reform roundtable and reflect on the wish lists of industry stakeholders – and whether there is hope for meaningful reform.
In this week’s episode of Relative Return Insider, hosts Maja Garaca Djurdjevic and Keith Ford take a look at the Reserve Bank’s latest rate cut call, the factors influencing the unanimous decision, and what economists expect from the rest of the year.
In this episode of Relative Return Insider, host Keith Ford is joined by Accountants Daily journalist Imogen Wilson to take a look at why there has been such broad support for a more comprehensive tax reform discussion at the Treasurer’s economic roundtable.
In this week’s episode of Relative Return Insider, AMP chief economist Shane Oliver joins the show to discuss Australia’s stagnating productivity ahead of the government’s economic reform roundtable, and how picking all the “low-hanging fruit” for reform in the ’90s helped kick off a surge that has since stalled out.