Aviva Expects Higher 1st Half, Fiscal Year 2023 Operating Profit; Restates Some 2022 Results

By Joe Hoppe

Aviva PLC said Wednesday that it expects both first-half and full-year operating profit to rise on year, as it restated its 2022 results to comply with accounting changes.

The FTSE 100-listed insurer and asset manager said it expects first-half operating profit of around 700 million pounds ($912.5 million), up from GBP661 million a year prior. It further expects full-year operating profit to grow 5%-7% from GBP1.35 billion in 2022.

Under the new International Financial Reporting Standards, or IFRS 17, total profit remains unchanged over the lifetime of a contract, but the timing of when profit emerges will be changed, leading to greater long-term predictability.

Under the new rules, Aviva restated its 2022 business unit operating profit as GBP1.9 billion, 15% lower than under the previous IFRS 4 rules. The accounting changes related to its Annuities and Protection units, with new business profit now deferred over the lifetime of the contract.

Aviva's 2022 shareholder equity was also restated as GBP9.4 billion, from GBP11.9 billion under IFRS 4.

The company said it remains confident in meeting or beating financial targets for cash remittances, own funds generation and cost reduction, targets that remain unchanged under IFRS 17.

Aviva said there are no changes to the business's underlying economics, strategy or dividend guidance.

Write to Joe Hoppe at joseph.hoppe@wsj.com

(END) Dow Jones Newswires

July 19, 2023 02:44 ET (06:44 GMT)

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