Aviva Plc (LSE:AV.) exceeded its operating profit target in 2023 with a 9% increase to £1.47 billion, up from £1.35 billion in 2022.
Management had guided for operating profits between £1.42 billion and £1.45 billion but warned the actual number might be nearer the bottom than the top given the dismal weather in Britain this winter.
The FTSE 100-listed insurance multinational announced a £300 million share buyback with the annual results, and raised the total dividend by 8% to 33.4p per share with a Solvency II shareholder cover ratio of 207%.
"We are building a clear track record of strong and consistent performance,” said chief executive Amanda Blanc. “In each of the last three years, we have grown sales, operating profit and our dividend.
Aviva noted good results in general insurance, workplace pensions, and private health sales, with general insurance premiums up by 13%.
The company increased its dividends guidance following this morning’s results and is expected to grow the cash cost of the dividend by mid-single digits.
Aviva has set an operating profit target of £2 billion by 2026.
The positive results come days after the insurer announced its return to the Lloyd’s of London syndicate by acquiring Probitas for £242 million.
Aviva stocks rallied 3.7% in opening exchanges.