Aviva PLC (LSE:AV.)’s profits were down last year but several business sales drove investor rewards.
Adjusted operating profit fell 10% in 2021 to £1.6bn driven by poor performance in UK and Ireland Life in the first half of the year, in large part due to higher interest rates and strong equity returns, with value of new business in annuities and equity release falling 21%.
The company grew cash remittances by 22% to £1.66bn, with general insurance gross written premiums rising 6.6% to £8.8bn.
“We have made clear strategic progress this year. We divested eight non-core businesses, generating £7.5 billion of proceeds and realising excellent value for our shareholders,” said Amanda Blanc, group CEO of Aviva.
"As a result, Aviva is now much leaner, simpler, and focused on the UK, Ireland and Canada, where we have market-leading positions and clear plans to deliver strong returns."
Aviva sold eight non-core businesses in 2021 in select countries, reducing overall revenue for the company but adding to investor returns.
The company distributed £4.75bn in shareholder returns via its B Share Scheme and a share buyback.
Dividend per share for 2021 was 22.05p, a 5% increase on 2020.
Aviva sought to offload debt, with the company’s Solvency II debt leverage ratio of 27% now below the target 30%.
The company expects dividend per share of 31.5p in 2022, and 33p per share in 2023.
Aviva also announced it would acquire will acquire advice service Succession Wealth for £385mln as the group increases its footprint in the UK wealth market.
The move will see Aviva acquire the advice offering service’s 200 planners, £9.5bn of assets and 19,000 clients in the UK, ad is expected to complete in the second half of 2022.
Aviva’s share price closed yesterday at 406.6p, a 3% fall against close on Monday.