On Thursday, London-based Aviva Plc (ADR) (NYSE:AV) announced 14% growth within the first quarter. The relatively new business reported that its profits were headed in the right direction and that the company was well ahead of the projections.
The company that was rated as the 6th biggest insurance firm in terms of net premium income also announced that it would soon reveal more information about its upcoming merger with Friends Life Group. Despite the challenging nature of the integration, Aviva’s board of directors is certain that the merger will be carried out in a timely fashion.
The company’s portfolio grew to GBP247 million ($375.71 million) over the first quarter duration that ended on March 31. In the previous financial year, the company made GBP224 million in the first quarter. This marks a satisfactory improvement in the current year. The company grew by 15% in the UK to level at GBP103 million. The growth was fueled by better quality equity releases and annuities.
Aviva boasts of an avid following of about 34 million clients spread out over 16 countries. The company reported that it experienced a slight improvement in its economic capital surplus. It went up to GBP8.1 billion, compared to its previous stand at GBP8.0 billion towards the end of 2014. The company’s net assets also grew by 2% from 340 pence recorded at the end of 2014, to 349 pence.
Aviva’s CEO, Mark Wilson stated that the company has continued to exhibit a positive growth in value despite the harsh and uncertain nature of global economies. In March 2014, George Osborne who is the Chancellor of the Exchequer introduced new changes in his budget. These changes led to fundamental changes in the pension market, thus giving Aviva an opportunity to be more flexible. These new changes will additionally allow Aviva to consider new methods of generating income.
Aviva Plc (ADR) (NYSE:AV)’s deal to acquire Friends Life Group was worth GBP5.6 billion. The company expects to generate annual cost savings amounting to about GBP 225 million on an annual basis from the deal.
