Boston, MA 04/11/2014 (wallstreetpr) – Aviva Plc (ADR) (NYSE:AV) is a $25 billion insurance group. The company provides products and services in the insurance realm such as general insurance, fund management, savings. The company serves four major geographic regions namely U.K., Europe, North America and Asia-Pacific region. However, the company is of late spreading to more emerging markets, especially in Asia, where it sees lucrative opportunities.
The company is currently undergoing a transformation, seeking to shore up its balance sheet and return to profitable operations after the troubles of 2008/9 financial meltdown. It is worth noting that the company’s turnaround journey has already surpassed expectations.
Getting the job done
Aviva Plc (ADR) (NYSE:AV) is all over the map trying to find its comeback in the quickest time possible. The company is combining various turnaround strategies to gain solid footing in the business and grow from there. The company can be seen performing shrewd cost controls and divesting selected assets, mostly high-cost and low-margin ones.
In so doing, the insurer has been able to significantly bolster its bottom line and generated good cash flow. The company is obviously keen on achieving leaner and efficient business structure on a solid balance sheet.
Vast improvement
Profits have been hard to come by for Aviva Plc (ADR) (NYSE:AV) in the past years. But the company showed its improving health in fiscal 2013 reporting. The insurer reported pre-tax profit of £2.2 billion, a significant improvement from £2.9 billion loss that the company suffered in 2012.
As if that was not enough, the company maintained that it will continue its operation adjustments to ensure that profits increase even more in the current year. The insurer spent roughly £500 million in Britain last year, through projects such as utilities, schools, transport and hospitals. In undertaking the investments, the company took advantage of the friendly capital rules in the eurozone.
Poised for colossal earnings
From losses of 11.2p a share in 2012, Aviva Plc (ADR) (NYSE:AV) pushed earnings to 22p in 2013. Analysts expect the company to maintain its earnings growth, thereby achieving 118 percent growth to 47.9p per share in the current year and 9 percent growth to 52.1p in 2015.
