Your IndustryAug 3 2017

Aviva reveals customer acquisition plans as profits jump

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Aviva reveals customer acquisition plans as profits jump

Aviva has revealed it is developing services which will allow it to price products without asking its customers any questions.

This, the company stated, will allow people to buy insurance “as they would any other product”.

Aviva also said it is working on using technology to reward customer loyalty with new products and services.

It has made these claims in its half year results for 2017, which showed operating profits up 11 per cent to £1.4bn.

Operating profits in its life insurance division grew by 8 per cent to £1.3bn, with each of its product segments in its UK life division – long-term savings, protection and annuities and equity release – delivering double digit growth.

Profits at Aviva Investors grew by 45 per cent to £71m on the back of increased assets under management to £351bn in general, and the growth of its Aviva Investors Multi-Strategy (Aims) range in particular, which saw inflows of £12bn.

Mark Wilson, the chief executive of Aviva, said: “The benefits of our geographic and product diversity are clear and Aviva has numerous sources of growth.

“In the first half of 2017 we increased sales right across the group and delivered strong growth in operating profit in the UK, Europe and Aviva Investors.

“We are growing and investing in the UK. We have grown top line sales and bottom line profit in UK general insurance, pensions, annuities and protection.

“Our digital business continues to make progress, making insurance simpler and more convenient for customers.”

In Aviva’s annuities and equity release business, operating profits increased by 26 per cent to £309m due to higher sales of both products.

Operating profits from protection grew by 17 per cent to £133m, which reflected strong sales in individual protection as well as with “expense efficiencies”.

Last month Aviva sold Friends Provident International to RL360, which it has said simplifies its business and provides capital which can be reinvested.

Mr Wilson said: “We have made a good start to 2017, delivering growth in operating profit and dividends, maintaining capital strength and reallocating capital towards our businesses with the greatest potential.

“As a group, Aviva is getting leaner and stronger and we are confident in our ability to sustain growth in the coming years.”