Higher premiums help FTSE 100 insurer Aviva beat profit forecasts
07:36 , Michael Hunter
Higher premiums have helped FTSE 100 insurer Aviva post better-than-expected profit for the half year.
Operating profit came in at £875 million, up 14% and above than the £830 million forecast. It also upped its interim dividend by 7% to 11.9p per share.
It said that premiums in its General Insurance business were up 15% to just over £6 billion.
Sales of retirement products were lower, at £3.036 billion, down from £3.223 billion. The drop came due to a “contraction of the Equity Release market” and a £100 million fall in sales of “bulk purchase annuities”, the deals made when companies offload their pension schemes, which hit £2.3 billion in the period.
Amanda Blanc, Group chief executive officer, said:
“We remain very positive about Aviva’s prospects. Trading conditions across the UK, Ireland and Canada, are excellent. And the UK market, our largest, is highly attractive and growing.”
Annual rate of inflation rose from 2% to 2.2% in July
07:23 , Jonathan Prynn
The annual rate of inflation rose for the first time this year last month, although not as much as some City forecasters feared.
The headline measure of the cost of living, the Consumer Price Index (CPI), was 2.2% higher in July, compared with a rise of just 2% in June, according to official figures from the Office for National Statistics (ONS).
However, inflation had been expected to go up to 2.3% so the smaller than predicted rise is unlikely to delay another interest rate cut. The rate of inflation last rose in December 2023 when the CPI went up from 3.9% to 4%.
The ONS said the main reason for the tick up in the inflation rate was that gas and electricity prices did not fall as steeply as they had in same month last year.
Darren Jones, Chief Secretary to the Treasury, said: “The new Government is under no illusion as to the scale of the challenge we have inherited, with many families still struggling with the cost of living. That is why we are taking the tough decisions now to fix the foundations of our economy so we can rebuild Britain and make every part of the country better off.”
FTSE 100 on course for further gains as brighter mood holds after inflation rise
07:16 , Michael Hunter
London’s main stock market index is on course for further gains in opening trade, in a move that would set it on course for its fourth consecutive day of gains.
The positive mood held after inflation data for July showed a rise for the first time in over six months.
July’s consumer price index rose to 2.2% for the month, up from the 2% seen in June, which was the second reading in a row bang in line with the Bank of England’s official target.
After the numbers were out, futures trade stayed positive, pointing to a rise of around 35 points.
Recap: Yesterday’s top stories
06:52 , Simon Hunt
Good morning from the Standard City desk.
Here’s a summary of our top headlines from yesterday:
