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.”
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