Aviva said there has been no impact on strategy, capital generation, dividend guidance or capital return outlook with the adoption of IFRS 17 and IFRS 9 accounting principles for the final six months of 2022.
Under IFRS 17, profit remains unchanged over the lifetime of a contract, although the timing of when profit emerges will be altered, resulting in increased long-term predictability of profit.
In a statement, the insurance company said cash remittance, capital generation and approach to capital allocation are unchanged by IFRS 17.
Solvency II is also unchanged, while there is no impact on the 2023 dividend guidance.
Aviva added it remains “confident” in meeting or exceeding its financial targets for cash remittance, own funds generation and cost reduction.
However, restated business unit operating profit for 2022 is £1.9bn, 15% lower than under IFRS 4.
Looking ahead, the group expects operating profit for the first half of 2023 of £700mln and full-year operating profit of £1.35bn under IFRS 17, which would imply growth of between 5% and 7%.
"The adoption of IFRS 17 is a significant milestone for the insurance industry, and provides a comprehensive and more consistent approach to accounting for insurance contracts,” said chief financial officer Charlotte Jones.
“The operating profit and balance sheet impacts we are announcing today are consistent with our previous guidance, and there is no impact to the underlying economics of our business, our strategy or dividend guidance."