Aviva posts net loss for 2008
by David Masters
Story link: Aviva posts net loss for 2008
Aviva shares plunged 33% yesterday, the largest drop in 20 years, after the company posted a 2008 net loss of £885 million.
The loss is compared to a profit of £1.5 billion in 2007.
Europe’s biggest life insurance provider blamed the loss on the global financial crisis, which forced it to write down £1.6 billion on investments, and £819 million on short term fluctuations in business returns.
Excluding writedowns, the group’s operating profit increased 4% on year to £2.3 billion.
Combined operating ratio for the year was 98%.
The company said its full year dividend will remain unchanged at £0.33.
Andrew Moss, chief executive, said: “In a tumultuous year, our underlying business has shown great resilience.
“Operating profits are up and we have maintained our dividend.
“Aviva remains financially strong.”
With the majority of its business now outside the UK, Aviva said the weak pound had helped improve its results.