Aviva PLC (LSE:AV.) has declared a dividend of 10.30p per share to be paid in September to ordinary shareholders, 40% higher than last year’s interim dividend.
The life insurer and pension provider also said it anticipates launching share buyback at the end of the financial year, the size of which will be determined by the board later this year.
Amanda Blanc, chief executive of the FTSE 100 group, said: "Sales are up, operating profit is higher, our financial position is stronger. This has been an excellent six months for Aviva.
“Our scale and diversification give us resilience and opportunity, enabling Aviva to withstand the challenging economic climate.”
Aviva boosted its operating profit in the first half by 14% to £829mln, but saw its loss after tax widen to £633mln in the period, up from a £198mln loss in the first six months of 2021, reflecting “adverse market movements”.
New business sales in its life insurance segment rose 3% to £17.4bn, while its general insurance business increased turnover from gross written premiums by 6% to £4.7bn.
Annuities and equity release sales were up 12% at £2.76bn.
At Aviva Investors, the fund management arm, external net flows were said to have “recovered well” in the second quarter to reach £200mln for the first half after a disappointing first quarter but were still well down on the £1.1bn recorded in the same part of last year.
The group said it expects “continued growth” in the life insurance segment and said it will “price appropriately to manage inflation” in its general insurance products.
Aviva said it is on track to meet the first stage of its cost target to reduce spending by £300mln by 2022 and is still working towards delivering its increased target to reduce costs by £750mln by 2024.
It also said it was “on track” to meet its target to hold sufficient funds under Solvency II regulations, of £1.5bn per year by 2024.