Risk overhaul pays off for Aviva
AvivaAustralia has given a rare insight into its financial performance, announcing a 31 per cent rise in pre-tax profits of $160 million for 2005.
Gross new business was up 22 per cent to $6.8 billion, which was boosted by a strong turnaround in the company’s risk business. This division achieved sales of $127.3 million, up 120 per cent.
Aviva Australia chief executive officer Allan Griffiths said the three years spent repositioning the business was paying off.
“We put in place the framework for long-term sustainable results, which included resurrecting Navigator and overhauling the risk business,” he said.
“These moves are continuing to perform, with strong growth already being achieved in the first quarter of 2006.”
Navigator sales were up 26 per cent to more than $2 billion, which, according to Griffiths, has been boosted by the ‘lite’ version of the platform.
The company has also benefited from stronger investment markets, which boosted inflows into the platform.
“Strong equities markets and the knock-on effect of investor confidence, which has led to lower redemption rates for our navigator platform and Portfolio partners, have benefited the group’s results during the year,” he said.
“We have also noticed a significant increase in superannuation inflows since the Federal Government removed the 12.5 per cent superannuation surcharge.”
AUTHOR
Recommended for you
With Fortnum Private Wealth and Professional Financial Services now unified under the Entireti umbrella company, CEO Neil Younger has detailed to Money Management the firm’s new direction and future expansion.
The FAAA has suggested looking offshore for overseas financial advisers to ease the adviser shortage, but are employers willing to take on the burden of workplace visas?
There may be a huge influx of alternatives coming to the market, but timing and access difficulties mean advisers can easily end up disappointed with their selection, according to Morningstar global CIO Dan Kemp.
An NSW individual has pleaded guilty to one criminal charge of providing unlicensed financial services after promoting crypto investments at national seminars.
