Life insurer Aviva lost $995M in 2008

Aviva PLC, Europe’s biggest provider of life insurance products, posted a loss of $995 million for 2008, down from a profit of $2.98 billion in 2007.
MAR 05, 2009
By  Bloomberg
Aviva PLC, Europe’s biggest provider of life insurance products, posted a loss of $995 million for 2008, down from a profit of $2.98 billion in 2007. The company also started reporting its results using the so-called mark-to-market accounting, which requires European carriers to consider investment risks and state their investment returns using a market-appropriate standard rate. Using this method, the loss was as large as $10.9 trillion, compared with 1.95 billion pounds ($3.88 billion) in 2007. Tumultuous equity markets took their toll on the insurance company, affecting bottom line results, Andrew Moss, chief executive of London-based Aviva, said in a statement. Aviva said that its corporate-bond portfolio had some $278 million in defaults last year, representing 0.2% of the total corporate-debt portfolio, including losses on American International Group Inc. of New York, Fannie Mae of Washington, Freddie Mac of McLean, Va., Lehman Brothers Holdings Inc. of New York and Washington Mutual Inc. of Seattle. Still, the company reported an operating profit of $3.24 billion, up 4% from 2007. Life and pension sales increased by 11% to $51.3 billion. Despite the loss last year, the company decided to keep its 33-pence-per-share dividend, which is the same as it was last year.

Latest News

Retirement delays, Social Security fears prompt advisors to rethink income strategies
Retirement delays, Social Security fears prompt advisors to rethink income strategies

Concerns about outliving savings and healthcare costs are reshaping how "Peak 65" Americans and advisors approach income planning.

Merrill Lynch on the hook for $3.7M after clients claimed sale of unsuitable private equity
Merrill Lynch on the hook for $3.7M after clients claimed sale of unsuitable private equity

Some investors recently have seen million dollar plus decisions by FINRA arbitration panels involving complex products decisions go their way.

Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler
Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler

Former advisor Isaiah Williams allegedly used the stolen funds from ex-Dolphins defensive safety Reshad Jones for numerous personal expenses, according to police and court records.

RIA moves: Modern Wealth tops $8.5B AUM as Aspen expands in Connecticut
RIA moves: Modern Wealth tops $8.5B AUM as Aspen expands in Connecticut

Modern Wealth's latest deal for a California-based fee-only RIA marks its fourth acquisition of 2025.

Empower defends private market access in 401(k)s in response to Warren scrutiny
Empower defends private market access in 401(k)s in response to Warren scrutiny

Sen. Warren has warned of private market investment risks due to opacity, illiquidity, and past regulatory issues.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.