Aviva returns to profit in 2013

Thursday 06 March 2014 18.50
Aviva reports net profits of £2 billion for last year
Aviva reports net profits of £2 billion for last year

British insurer Aviva today said it had swung back into profit during 2013 as it underwent major restructuring and after it avoided a huge write-down suffered the previous year. 

Net profit stood at £2 billion last year compared with a loss after tax of £3.1 billion in 2012, the company said in its results statement.

Aviva had tumbled into a huge loss during 2012 owing mainly to a massive write-down following the sale of its US business.

"The turnaround at Aviva is intensifying," chief executive Mark Wilson said in its results statement.

"Following our exit from a number of low margin, underperforming or non-strategic businesses, Aviva is simpler, more focused and better managed. We have significantly improved our capital surplus, increased our liquidity and have a stronger leadership team," he said.

Aviva said its operating profit - an indicator of its day-to-day business - rose 6% to £2.04 billion in 2013 compared with the previous year thanks to a jump in sales of new insurance policies.