Aviva EPS Misses Estimates While Operating Profit Surges 25% to £2.2 Billion
Aviva reported EPS of $0.36, missing estimates of $0.43, with insurance revenue at $33.8 billion slightly below forecasts. Group operating profit jumped 25% to £2.2 billion, IFRS ROE rose to 17.5%, while final dividend lifted 10% to 26.2p and a £350 million share buyback was announced.
1. Earnings and Revenue Performance
Aviva delivered EPS of $0.36 versus analyst expectations of $0.43, with insurance revenue reaching $33.8 billion, marginally below forecasts as premium growth was offset by competitive pricing in key markets.
2. Operating Profit and Profitability Metrics
Group operating profit climbed 25% year-over-year to £2.2 billion, driven by improved underwriting and investment returns, while IFRS return on equity increased to 17.5% from 15.7%, reflecting stronger capital efficiency.
3. Capital Return Actions
The board approved a 10% rise in the final dividend to 26.2p per share and announced a £350 million share buyback, backed by over £2 billion in cash remittances, underscoring commitment to shareholder returns.
4. Segment Growth and Valuation
General insurance premiums grew 18% to £14.1 billion following the Direct Line acquisition, while the wealth business managed over £230 billion in assets with net inflows of nearly £11 billion; the shares trade on a P/E of 24.2 and a debt/equity ratio of 0.73.