Aviva posts 1% profit rise and rebrands invesmtent business

by Gill Montia

Story link: Aviva posts 1% profit rise and rebrands invesmtent business

Aviva, the UK’s largest insurer, posted a 1% increase in operating profits, to £3.29 billion, for 2007.

The group recorded strong growth in its life business, with operating profit rising 35%, to £2.75 billion. Sales in both long-term savings and life assurance products rose sharply.

However, operating profit from its general insurance and health division fell by 39%, to just over £1 billion.

The floods in the UK last summer resulted in claims amounting to £475 million, leaving general insurance profits down 61% (£433 million).

Aviva is rebranding its Morley fund manager as Aviva Investors, which will be headed by the recently appointed Alain Dromer, a former HSBC executive.

Mr Dromer has been carrying out a performance review since he joined the group towards the end of last year and plans to rebrand all Aviva’s international asset management operations under the Aviva Investors name.

In a bold statement, Mr Dromer says: “It was a tale in the past that insurers would never have a good fund management business. That is over now …”

Richard Field, director of investments at Norwich Union Life, will become director of global investment solutions and a director of business development and a chief technology officer are currently being sought.