Aviva announces £300m share buyback after profits increase to £1.47 billion

07 March 2024 , 13:08

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Aviva, the insurance and pensions giant, saw shares move higher on Thursday morning as a result of a new share buyback scheme (Image: PA Wire/PA Images)

Aviva is giving £300 million back to its investors through a share buyback after its profits increased.

The company that sells insurances policies, pensions and health policies saw its shares go up on Thursday morning on news of the buyback. Amanda Blanc, the chief executive, said the company had performed strongly last year. Group operating profits increased by 9% to £1.47 billion in 2023 compared with the previous year.

Aviva sold 16% more general insurance, making £6.64 billion, and personal insurance went up by 24%. Aviva also said more people are buying health insurance, which increased by 16%. Retirement sales increased by 14% to £7.09 billion, driven by increased bulk purchase annuity transactions.

They also said they will give shareholders 33.4p for each share they own. The company wants to make £2 billion by 2026. Ms Blanc said: "Sales are up, costs are down, and operating profit is 9% higher. Our position as the UK's leading diversified insurer, with major businesses in Canada and Ireland, is clearly delivering."

"Our prospects have never been better. We have leading businesses in growing markets, a fantastic brand, and we are investing substantially to make service better for our 19 million customers."

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Admiral, another big name in the insurance sector, also reported a boost in profits. They revealed that their pre-tax profits had risen by 23% to £442.8 million for the year following an increase in turnover. As a result, they announced that over 10,000 employees would receive up to £3,600 in free share awards for the year.

Lawrence Matheson