Britain's largest insurer Aviva confirmed today annual operating profit rose 11 per cent, as expected, on the back of improved pricing and tighter costs across its life and general insurance divisions.
Aviva had announced the jump to £1.907 billion earlier this month after a strong second half pushed it significantly ahead of flat market forecasts of around £1.7 billion pounds.
Aviva raised its total dividend by five per cent to 24.15p, in contrast to rival Prudential, which yesterday slashed its final payout for the first time since World War One.
Aviva chief executive, Mr Richard Harvey, said margins across the life business had risen to 26.1 per cent from 24.4 per cent in 2002 and he struck an upbeat note for trading this year, including the beleaguered British savings market, where he said there were signs confidence was returning.
"We believe that the prospects for growth in 2004 in our long-term savings businesses are encouraging, with evidence that investors are gaining confidence," Mr Harvey said in a statement.
