Aviva Profit Up On Higher Premiums, Lifts Dividend; Sees Higher Earnings In FY17

(RTTNews) - British life and health insurer Aviva Plc (AV.L, AV) reported Thursday that its fiscal 2016 profit before tax increased to 1.83 billion pounds from 1.20 billion pounds last year.

Profit before tax attributable to shareholders' profits, meanwhile, declined to 1.19 billion pounds from 1.41 billion pounds a year ago.

Basic earnings per share were 15.3 pence, down 34 percent from 23.1 pence last year.

Excluding exceptional item, operating profit was 3.01 billion pounds, compared to 2.69 billion pounds last year. Operating earnings per share were 51.1 pence, compared to 49.7 pence last year.

Operating profit growth reflected strong performances mainly from Aviva Investors, Canada, UK and Ireland General Insurance and Italy.

Net asset value per share rose 6% to 414 pence.

Gross written premiums increased to 25.44 billion pounds from 21.93 billion pounds a year ago. Premiums written net of reinsurance were 23.08 billion pounds, higher than 19.04 billion pounds a year ago.

Further, the company announced final dividend per share of 15.88 pence, up 13 percent from last year. Total dividend per share would be 23.30 pence, up 12 percent.

Looking forward, for fiscal 2017, the company expects mid single digit annual growth in operating earnings per share, and an increase in the dividend payout ratio to 50% by the end of 2017.