Aviva profits increase

Mar 4 2010 By nebusiness

Insurance giant Aviva today reported a "significant year of progress" after weathering the recession by slashing costs and trimming nearly 11,000 roles across its workforce.

The group reported a 3% rise in operating profits to £3.48bn for 2009 and confirmed the first signs of an improving market as customers look to start saving again.

It said plans to cut costs by £500m were a year ahead of target, having axed 10,700 jobs over the past two years - including a 30% reduction in its UK employee base.

Aviva will keep a "rigorous" control on costs in the UK, where figures revealed a tough market in 2009, with operating profits down 11% for the life business to £672m and 18% lower for general insurance and health.

However, new business figures last month showed a marked rebound in the fourth quarter and raised hopes that the worst was behind it.