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Aviva flies to top of Footsie as turnaround plan bites

Last updated: 20:41 06 Mar 2014 AEDT, First published: 21:41 06 Mar 2014 AEDT

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British Insurance giant Aviva (LON:AV.) swept to the top of Footsie Thursday as it revealed the turnaround plan kicked off a year ago was taking hold.

Shares rose over 10% as the firm reported in its 2013 results a profit after tax of £2.2bn compared to a £2.9bn loss in the previous year.

The turnaround drive has seen the firm dispose of some businesses and 2,000 staff losses.

Chief executive Mark Wilson, in his first set of results at the helm, said: "The turnaround at Aviva is intensifying. We have focused the business on 'cash flow plus growth' and the benefits are starting to be reflected in our performance. 

"Cash flows to the group are up 40%, operating expenses are down 7%, operating profit is up 6% and value of new business is up 13%."

He added: "Following our exit from a number of low margin, underperforming or non-strategic businesses, Aviva is simpler, more focused and better managed. 

"We have significantly improved our capital surplus, increased our liquidity and have a stronger leadership team."

The dampener, however, came in the aftermath of the the recent UK storms, which it said had given the group a£60mln hit  from flood losses in the first two months of this year.

The company declared final divi per  share of 9.4p compared to 9 p in 2012. The full year dividend is 15p a share.

Shares are up 10.06%  at 513p a pop.

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