Aviva plc: 2014 Interim Results Announcement

Aviva plc: 2014 Interim Results Announcement  LONDON, UNITED KINGDOM -- (Marketwired) -- 08/07/14 --   Aviva PLC (LSE: AV) (NYSE: AV)  Mark Wilson, Group Chief Executive Officer, said:  "The half year results show that momentum in Aviva's turnaround continues. All of our key metrics have improved, operating earnings per share are up 16%, and book value has increased 7%.   "We have reduced our debt, decreased expenses and increased profit - this is just good business. Aviva remains a work in progress, and these results are a step in the right direction."   Cash flow       --  Cash remittances up 7% at GBP  612 million (HY13: GBP  573     million) --  Operating capital generation(1) stable at GBP  910 million (HY13:     GBP  933 million(2)) --  Interim dividend per share up 4.5% at 5.85p (HY13: 5.60p).     Profit      --  Operating profit(1) 4% higher at GBP  1,052 million (HY13: GBP      1,008 million) --  Operating EPS(1) 16% higher at 23.6p (HY13: 20.3p) --  IFRS profit after tax(1) up 113% at GBP  863 million (HY13: GBP      406 million) due to lower restructuring costs and positive investment     variances     Expenses      --  Operating expenses(1,3) GBP  1,399 million, down GBP  129 million     (HY13: GBP  1,528 million) --  Expense reduction equivalent to GBP  568 million annualised savings     vs. GBP  400 million target --  Operating expense ratio(1) of 52.1% (HY13: 54.8%)     Value of new business      --  Value of new business(4) up 9%(5) at GBP  453 million (HY13: GBP      428 million(2)) --  Poland, Turkey and Asia(4) grew 54%(5) and contributed 25% of Group     VNB (HY13: 19%)     Combined operating ratio      --  Combined operating ratio (COR) improved to 95.5% (HY13: 96.2%) --  UK COR of 94.3%, best in 7 years     Balance sheet      --  IFRS net asset value per share up 7% at 290p (FY13: 270p) --  MCEV net asset value per share up 3% at 478p (FY13: 463p(2)) --  External leverage ratio 46%(6) of tangible capital (FY13: 50%), 30% on     S&P basis --  Intercompany loan reduced to GBP  3.6 billion at end of July 2014     (Feb14: GBP  4.1 billion) --  Economic capital surplus(7) GBP  8.0 billion (FY13: GBP  8.3     billion), coverage ratio 180%     (1) On a continuing basis, excluding US Life.  (2) Comparatives have been restated to reflect the changes in MCEV methodology. See F1 - MCEV Basis of Preparation for further details.  (3) Operating expenses excludes integration and restructuring costs.  (4) Poland includes Lithuania, Italy excludes Eurovita, Spain excludes Aseval and Asia excludes Malaysia.  (5) On a constant currency basis.  (6) External leverage ratio excludes the impact of the debt raised in July 2014.  (7) The economic capital represents an estimated position. The economic capital requirement is based on Aviva's own internal assessment and capital management policies. The term 'economic capital' does not imply capital as required by regulators or other third parties.   Click on, or paste the following link into your web browser, to view the associated PDF document.  http://www.rns-pdf.londonstockexchange.com/rns/4789O_1-2014-8-7.pdf  This information is provided by RNS  The company news service from the London Stock Exchange  Contacts  Investor contacts Colin Simpson +44 (0)20 7662 8115  David Elliot +44 (0)20 7662 8048  Media contacts Nigel Prideaux +44 (0)20 7662 0215  Andrew Reid +44 (0)20 7662 3131  Sarah Swailes +44 (0)20 7662 6700  Timings Real time media conference call: 07:15 hrs BST  Analyst presentation: 08:15 hrs BST  Presentation slides www.aviva.com 06:30 hrs BST  Live webcast: www.avivawebcast.com/interims2014/ 08:15 hrs BST     
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