Contrary to other insurers such as the Prudential and RSA Insurance Group, which said recently that growth would come largely from Asia and emerging markets, Andrew Moss, group chief executive for Aviva, said the UK and Europe have the greatest absolute growth prospects in the next five years.
He said: "We have a clear strategy and we are meeting our customers' needs. By focusing on what we do best in the markets where we have strength and scale, we will continue to prosper in 2011.
"The UK and Europe are our engines for growth. In the UK, our UK life business with IFRS operating profits reached £850m; we have 19m customers and insure one in three households.
"Our UK life business delivered an internal rate of return of 15 per cent, with 19 per cent in long-term saving sales.
"In Europe, where we have 18m customers, life and pensions profits were up to £893m, with an 13 per cent IRR. So we do believe strongly that the UK and Europe is the world's most attractive life and pensions market."
His comments came as Aviva unveiled its results, showing a 26 per cent overall growth in operating profit, from £2.02bn to £2.55bn, citing a customer base of 53m globally.
The results also showed that investment performance and customer demand for its products increased total funds under management by £23bn to £402bn at the end of 2010.
Aviva has also raised its dividends to 6 per cent a share, to 25.5p a share and has pledged to reduce its gearing while investing in organic growth in the business.
Mr Moss said there would be more opportunities for growth, with new business coming on with Santander, as well as selling insurance through the bancassurers in Europe.
He added that Aviva would continue to grow its business organically into different areas where the brand works in 2011, rather than using its capital to make acquisitions. source www.ftadviser.com... For the latest updates PRESS CTR + D or visit Stock Market news Today
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