British insurer Aviva, which owns Hibernian, has reported a 12% rise in first-half profits as the strong euro helped offset the impact of market turmoil. But its Irish profits fell almost 20% as life sales dropped.
It also announced a long-awaited deal to re-allocate surplus assets held by two of its funds. It said it would make a £1 billion offer to eligible policyholders to reattribute the surplus assets - money built up in the funds over the years above what is needed to meet policyholder commitments.
Aviva's operating profit on a European embedded value (EEV) basis rose to £1.72 billion from £1.54 billion a year ago, when it was hit by the cost of heavy flooding in Britain. The figures were in line with expectations.
Aviva's key life division remained a driver of the group's growth with operating profit up 18%, but results were mixed, with drops in Ireland and Netherlands, while markets like Poland and the US division continue to grow. Its general insurance unit, which generates roughly a quarter of sales, saw operating profit dip 4%.
Aviva's profits in its Irish life division were £30m (€38m), down 19% on a year earlier as sales dropped 27% to £648m. Insurance profits almost halved to £41m, reflecting higher claims costs and 'intense competitive pressures'.
