Britain’s Aviva insurance logs 885 mn pound loss

Britain’s Aviva insurance logs 885 mn pound loss
AFP
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First Published: Thu, Mar 05 2009. 01 37 PM IST
Updated: Thu, Mar 05 2009. 01 37 PM IST
London: British insurance giant Aviva on Thursday reported a net loss of £885 million (€995 million, $1.25 billion) in 2008, citing the falling value of its assets.
Operating profits — earnings before tax and other payments — were up 4% to £2.297 billion.
“Bottom line earnings have been affected by investment markets which have predictably created significant unrealised losses during the year,” Aviva’s chief executive Andrew Moss said in the earnings statement.
“In a tumultuous year, our underlying business has shown great resilience,” he said, however. “Operating profits are up and we have maintained our dividend.”
The operating profit and net loss figures were measured according to IFRS international accounting standards.
Profits as measured by the so-called MCEV standards for “embedded value”— an accounting method for indicating the earning potential of a company, commonly used for insurance firms — were calculated at £7.71 billion.
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First Published: Thu, Mar 05 2009. 01 37 PM IST