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.