Investing.com – Aviva (LON:) Shares rose strongly on Thursday after the UK asset manager and insurer announced a strong rise in operating profit in 2023, an upgrade to its dividend forecast and a new share buyback.
At 05:20 ET (1020 GMT), Aviva shares were up 2.7% at £467.12, bringing year-to-date gains of more than 7%. (1 GBP = 1.2750 USD)
Operating profit for 2023 was £1.47 billion, up 9% from the previous year and ahead of the £1.43 billion forecast, according to the company’s consensus survey.
Insurers are addressing issues such as the pandemic, rising inflation and claims costs, and higher losses from natural catastrophes by generally raising prices.
Showing confidence in the future, Aviva also announced an 8% increase in its overall dividend, as well as a new £300 million share buyback programme.
“We are building a clear track record of strong and consistent results. In each of the last three years, we have increased sales, operating income and dividends,” CEO Amanda Blanc said in the results report.
“Aviva is financially strong. We are trading consistently well. Our prospects have never been better.”