Aviva sees 10pc profit decline despite encouraging performance from Norwich-based general insurance business.
Insurer Aviva has admitted there will be no quick-fix to its problems after profits declined 10pc and it warned of more challenging conditions this year.
The insurer, which has been the focus of shareholder anger following its lacklustre performance, has pinned its hopes on a restructuring drive that will see it eliminate non-core businesses and cut costs.
It has been encouraged by recent trading in the UK, where its motor and household insurance arm grew profits by 17pc on an underlying basis despite �40m of weather-related claims in June.
However, restructuring costs and lower returns from its life and pensions operations in the beleaguered eurozone lowered overall operating profits by 10pc to �935m.
Including a one-off write-down on the value of its US business, the group reported a net loss after tax of �681m.
You may also want to watch:
Chairman John McFarlane, who is leading the restructuring drive following the summer ousting of chief executive Andrew Moss, said he believed the company's three-year turnaround strategy was the right one.
'It is my sense that we have the right agenda, we have the people in place to execute it, and we are broadly on track with the programme we set out last month.'
- 1 Driver dies in crash on A47
- 2 Motorcyclist dies in crash on A11
- 3 Electric vehicle owners could have to pay £50 to run cables to cars
- 4 GP surgery in special measures after inspectors find range of faults
- 5 Indian restaurant in Norfolk nominated for two national awards
- 6 End of an era as hardware store closes after 60 years
- 7 Your favourite pub, café, restaurant and hotel in Norfolk revealed
- 8 Vintage tractor enthusiast's prized collection goes under the hammer
- 9 Woman who was found with maggots living in hand evicted from care home
- 10 Inside the police operation that has led to 3000 arrests in Norfolk
Shares opened slightly higher today after Mr McFarlane kept the company's half-year dividend at 10p a share.
He added: 'Whilst this has been a challenging first half, we are taking the necessary actions to improve our position going forward.
'This environment is likely to continue and therefore we expect second half performance trends to be broadly similar to the first six months, but with higher restructuring costs as we implement our strategic plan.'