nsurance giant Aviva said it is on course to exceed its financial targets as it reported that its cost-cutting drive will be finished ahead of schedule.
The business told shareholders on Wednesday that the £750 million gross cost reduction plan will be completed in 2024, one year early.
It said operating profit grew 8% in the first six months of the financial year, reaching £715 million.
Bosses said they expect that growth to slow down somewhat, and full-year operating profit will increase somewhere between 5% and 7%, compared with the £1.35 billion it made last year.
The business said the first half of the year had benefited from “favourable weather” and a weaker comparison the year before but this will not necessarily repeat in the second six-month period.
Chief executive Amanda Blanc said: “Aviva is delivering consistently strong and profitable growth. In the first half of 2023 we grew sales, operating profit and dividends for our shareholders.
“Our excellent trading momentum is a direct result of the decisions we have taken over the last three years to re-focus Aviva.
“Today, Aviva has leading positions in growing markets, providing strong resilience in the current economic climate.”
She added: “Aviva’s performance and prospects have been transformed from just a few years ago.
“Today’s Aviva is about delivery and momentum, and these results show that Aviva is consistently meeting its promises.
“We expect to exceed our financial targets and we are making progress each quarter, as we said we would. I remain confident and excited that there is so much more Aviva can and will achieve.”
Earlier this year, activist investor Cevian Capital sold most of its stake in Aviva.
Cevian had held shares in the insurance business for close to three years, and built its holding to a peak last October.
It used its voice to put pressure on Ms Blanc, demanding increases in the returns to investors. Aviva met Cevian’s demand earlier in the year.
Aviva said on Wednesday that it expects to pay around £915 million in dividends this year.
It will exceed its solvency and cash remittance targets, it added.