Insurer Aviva returns to profit in 2013

Tags: Insurance
British insurer Aviva today said it had swung back into profit during 2013 as it underwent major restructuring and after it avoided a huge write-down suffered the previous year.

Net profit stood at £2.0 billion ($3.34 billion, 2.4 billion euros) last year compared with a loss after tax of £3.1 billion in 2012, the company announced in a results statement.

Aviva had tumbled into a huge loss during 2012 owing mainly to a massive write-down following the sale of its US business.

"The turnaround at Aviva is intensifying," chief executive Mark Wilson said in the statement.

"Following our exit from a number of low margin, underperforming or non-strategic businesses, Aviva is simpler, more focused and better managed. We have significantly improved our capital surplus, increased our liquidity and have a stronger leadership team.

"Although we have made progress in 2013, I want to guard against complacency."

Aviva today added that operating profit -- an indicator of its day-to-day business -- rose 6.0 per cent to £2.04 billion in 2013 compared with the previous year thanks to a jump in sales of new insurance policies.

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