Aviva has announced it expects profits for the first half of 2023 to reach around £700 million.

The figures would represent five to seven per cent year on year growth for the British multinational insurer.

Sharing an update necessitated by the need to restate certain 2022 financials as required under accounting standard IFRS 17 – effective as of January 2023 -- Aviva said its full year 2022 business unit operating profit was now £1.9 billion, 15 per cent lower than under IFRS 4 and consistent with previous guidance.

Investors were told the change chiefly reflected accounting changes to Aviva’s annuities and protection businesses, with new business profit now being deferred over the lifetime of a contract.

"There is no impact on our dividend guidance for 2023 of around 915 million pounds, with low-to-mid single digit growth in the cash cost of the dividend thereafter," the company added.

Chancellor Jeremy Hunt recently outlined a new strategy for pensions designed to unlock funding for high growth firms in the UK.

In his Mansion House speech, the chancellor said that it had created a new ‘Mansion House Compact’ signed by the chief executives of many of the country’s largest DC pension schemes – including Aviva, Scottish Widows, L&G, Aegon, Phoenix, Nest, Smart Pension, M&G, and Mercer – which commits these funds to allocated five per cent of their default funds to unlisted equities by 2030.

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