Aviva 9-month Value Of New Business Rises 14% - Quick Facts

(RTTNews) - Insurer Aviva Plc (AV, AV.L), in its interim management statement, reported that its value of new business or VNB for the nine months grew by 14% to 571 million pounds, on a continuing basis excluding Malaysia and Sri Lanka. Last year, it amounted to 503 million pounds. In line with its prior forecast, the company sees overall growth of VNB to moderate in the final quarter of the year, mainly due to a strong fourth quarter 2012.

During the first nine months of 2013, the firm's operating capital generation, an a continuing basis, remained stable at 1.3 billion pounds, with its economic capital surplus currently standing at 8 billion pounds.

Operating expenses of 2.28 billion pounds, were 10% lower than the company's 2011 baseline, and 7% lower year-on-year. The company is on track to deliver a cost-base in 2014 which is 400 million pounds lower than 2011, regardless of the impact of inflation.

Group Chief Executive stated, "Aviva remains in the early stages of turnaround. Whilst we have resolved a key issue in the disposal of our US business and have made progress in a number of areas, there remains much work to be done."

Aviva said it is on track with its cost cutting programme and the combined operating ratio of its general insurance business was broadly unchanged at 96.9%.