Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Aviva back in the black with £2.2 billion profit

Aviva back in the black with £2.2 billion profit

Aviva is back in the black after posting a £2.2 billion post-tax profit in 2013.

In spite of stronger than expected headline figures, the group said growth in its fund management business continued to disappoint. Aviva Investors grew its fund management contribution 74%, but at around 3% of group operating profit and with assets under management of £241 billion, chief executive Mark Wilson said this remained 'inadequate'.

'Plans are in place to address these issues over the coming years and Euan Munro brings much needed leadership and impetus to Aviva Investors,' Wilson commented.

The group said the turnaround at Aviva Investors was likely to take time. During 2013 the business saw £5 billion of net outflows.

The business recorded an IFRS profit after tax of £2.2 billion for 2013, up substantially from the £2.9 billion loss it posted the previous year.

The company said the turnaround was largely attributed to a stable profit stream and 2012’s figure being hampered by the write-down of its US arm which it sold towards the end of the year.

Operating profit rose 6% to £2 billion, while Aviva UK’s value of new business increased by 4% to £435 million in 2013, up £15 million on the year, which the group attributed to the RDR and auto-enrolment.

Wilson (pictured), group chief executive of Aviva, commented: 'Business has adapted well to the RDR with strong net inflows in our platform and small and medium-sized firms-focused corporate pensions offering,' he said.

‘Going forward, we expect to capitalise on our market leading position in annuities, benefit from a partial rebound in protection sales in the bancassurance channel and extract greater efficiency from our back book.’

Aviva added that it had saved a total of £360 million at the end of 2013 putting it ahead of its cost savings plan to reach £400 million by the end of 2014.

The market responded positively to the news. At 8:35 Aviva was trading at 501p, representing an 8% rise on the day.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Play CIO Tapes: do investors have it as good as it gets?

CIO Tapes: do investors have it as good as it gets?

Citywire gathered three of the UK's leading fund investment heads to discuss what they fear and what makes them cheer about the year ahead

Read More
Your Business: Cover Star Club

Profile: Rathbone's Newcastle boss on the road to £1bn

Profile: Rathbone's Newcastle boss on the road to £1bn

Starting from zero assets on day one, Rathbone's Newcastle team now looks after just over £400 million in clients money

Wealth Manager on Twitter