Aviva Investors, the asset management arm of UK insurer Aviva, has raised £1.5bn in new client funds during 2023, as a 12% increase in revenue helped lift the company's operating profit to £1.5bn.
Revenue and Profit Growth
The firm's operating profit rose by 12% to £1.5bn, driven by higher revenue across its businesses. According to Aviva's annual results, released on Thursday, the company's overall operating profit increased by 10% to £1.5bn, with the investment arm contributing significantly to the growth.
Aviva Investors saw net inflows of £1.5bn in the year, a turnaround from the previous year's outflows, as institutional clients increased their allocations. The firm's assets under management stood at £255bn at the end of 2023, up from £245bn a year earlier.
Strong Performance Across Divisions
The company attributed the revenue growth to higher fees from its investment management services, as well as increased demand for its savings and retirement products. Aviva's UK and Ireland general insurance business also performed well, with operating profit rising 8% to £800m.
Aviva's chief executive, Amanda Blanc, said the results demonstrate the strength of the company's strategy. "We have delivered another year of strong financial performance, with operating profit up 10% and our investment arm attracting net inflows," she said. "Our focus on delivering for customers and shareholders is clearly paying off."
Impact and Outlook
The positive results come as Aviva continues to reshape its portfolio, having sold several international businesses to focus on its core UK, Ireland, and Canadian markets. The company also announced a £300m share buyback programme, reflecting its confidence in future cash generation.
Looking ahead, Aviva expects to maintain its growth momentum, with plans to expand its digital capabilities and enhance customer experience. The company's solvency ratio remained strong at 207%, providing a solid foundation for future investments and returns.
