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Aviva Singapore posts 10% rise in H1 operating profit on financial advisory boost
INSURER Aviva Singapore on Thursday reported a 10 per cent increase in operating profit for its first half, boosted by sales from a bigger financial adviser network.
Operating profit for the six months ended June 30, 2018, stood at £46 million (S$82.2 million), up from £42 million a year ago.
Growth was driven mainly by stronger performance in the financial advisory (FA) channel, which rose by 55 per cent in value of new business (VNB) terms, compared to a year ago. VNB is a metric for measuring growth in the insurance industry. Aviva's network now has 772 financial advisers on board, up from 673 advisers a year ago. As at end June 2018, Aviva has partnered with about 60 FA firms.
Life operating profit rose 22 per cent, which more than offset an increase in losses from general insurance and health. VNB for Aviva's life and health business rose 47 per cent to £62 million due to higher sales volumes and a shift in product mix towards protection.
In a press statement, Nishit Majmudar, CEO of Aviva Singapore, said: “We are pleased that the FA channel continues to be the biggest contributor to our growth as we believe the FA channel is most aligned to customers’ needs and interests."