Aviva in £5.1bn turnaround – “Progress? Yes, some…”

by | Mar 7, 2014

Share this article

Facebook Open Graph

Aviva Group CEO Mark Wilson was modest after announcing a £2.2bn profit after last year’s £2.9bn loss.

“Although we have made progress in 2013, I want to guard against complacency. Aviva still has issues to address. Have we made progress? Yes, some. Is it a little faster than anticipated? Probably. Have we unlocked the full potential at Aviva? Not yet.”

So, shares yesterday up just the 9.2%, then.

 

The secret of this turnaround is a refocusing of the business via a ‘cash flow plus growth’ strategy. Group cash flows are up 40%, operating expenses down 7%, operating profit is up 6% and new business value is up 13%.

By streamlining the operation and walking away from certain low margin, non-strategic or underperforming businesses, Wilson is satisfied that Aviva is simpler, more focused and better managed with much improved capital surplus, liquidity and leadership.

However, Wilson isn’t hanging out the bunting just yet.

 

“Turnarounds are rarely linear and the improving results should be tempered by the realism that the business still has issues to address and is performing nowhere near its full potential.”

Which rather makes Aviva a company worth keeping an eye on for the next year or so…

Share this article

Related articles

VCT Managers still seeing strong investor appetite

VCT Managers still seeing strong investor appetite

Over the past five years, the assets managed by VCTs have increased from £4.1bn to £6.3bn. The sector saw record fundraising during the 2021/22 tax year, with £1.13bn invested.  VCTs have made over 1,000 investments into 530 small and medium-sized companies in the...

Trending articles

IFA Talk logo

IFA Talk is our flagship podcast, designed to fit perfectly into your busy life, bringing the latest insight, analysis, news and interviews to you, wherever you are.

IFA Talk Podcast - listen to the latest episode