Aviva suffered bigger losses in the first half as assets under management declined by 8% to £88.5 billion due to a fall in equity prices.

The company made a first half IFRS loss after tax of £633m (HY21: £198m loss) which it blamed mostly on adverse market movements.

Group CEO Amanda Blanc said despite the losses sales were up and the company’s financial position was stronger.

Operating profit was up 14% to £829m and the interim dividend is up 40% to 10.3p.
 

Aviva, which signed a deal to acquire Financial Planner Succession Wealth for £385m in March, reported total platform AUM 7% lower at £40.3bn (2021: £43.1 billion).

Aviva called its figures ‘strong’ and said they reflected the benefits of a diversified business model.

The company is planning to expand its wealth management arm and expects the acquisition of Succession Wealth to be completed in the second half subject to regulatory approval.
 
Ms Blanc said: "Sales are up, operating profit is higher, our financial position is stronger. This has been an excellent six months for Aviva.

“Our scale and diversification give us resilience and opportunity, enabling Aviva to withstand the challenging economic climate. Our market leading positions and our unique ability to look after a wide range of customers' needs are clear advantages and have driven robust operating performance.

“Trading has been encouraging across all our major businesses in insurance, wealth and retirement.”

She said despite her confidence the firm was aware of the cost of living pressures facing many customers, especially the more vulnerable. The firm has launched new, low cost, insurance products to help customers.