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Tuesday 02nd of December 2008
March 3, 2008

Aviva reveals fall in profits due to bad weather


by Kay Murchie
”Aviva

As a result of the turbulent weather in the UK, Norwich Union owner Aviva has unveiled a drop in the profits growth.

The group’s general insurance arm reported a 39% fall in operating profits to £1 billion last year. The fall was primarily due to the worst UK floods for 60 years.

However, operating profits saw a slight increase of 1% to £3.29 billion after a positive performance from its life and pensions arm. The increase was marginally ahead of recently revised City expectations.

Igal Mayer, Norwich Union’s chief executive, said the group remained on target to hit its ambitious targets set out for its life and pensions business.

We want to grow business in Asia and the US and we believe we can do that. In our global insurance business, we did not see the same level of loss as in the UK and we are not expecting the same kind of weather here next year, added Mr Mayer.

The group has reviewed its reinsurance cover and put in place extra protection to protect against multiple weather events such as the floods experienced last summer.

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