Aviva profits fall as it cuts the value of its US unit

Athlete Andy Turner at the 2012 GB Olympic Trials, which Aviva sponsored Aviva is hoping its turnaround plans will gather speed

Related Stories

Insurance group Aviva has seen its half-year profits fall 10% after it had to write down the value of its US businesses.

Aviva made a pre-tax operating profit of £935m in the first six months of 2012, down from £1.04bn a year earlier.

The company, which announced last month that it would cut 16 under-performing businesses, said it reduced the value of its US operations by £876m.

Chairman John McFarlane said the six months had been "challenging".

"While this has been a challenging first half, we are taking the necessary actions to improve our position going forward," he said.

"This environment is likely to continue and therefore we expect second-half performance trends to be broadly similar to the first six months, but with higher restructuring costs as we implement our strategic plan."

Aviva said last month that it would sell off businesses, including its South Korean arm.

Mr McFarlane also set a target of cutting costs by £400m by 2014.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories



  • A very clever little girlBrain gain

    Why are people getting better at intelligence tests?

  • BeefaloBeefalo hunt

    The hybrid animal causing havoc in the Grand Canyon

  • A British Rail signBringing back BR

    Would it be realistic to renationalise the railways?

  • Banksy image of girl letting go of heart-shaped balloonFrom the heart

    Fergal Keane on the relationship between love and politics

  • Don Roberto Placa Quiet Don

    The world's worst interview - with one of the loneliest men on Earth

Try our new site and tell us what you think. Learn more
Take me there

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.