Aviva pension scheme surplus hits £2.9bn

Aviva’s net pension scheme surplus hit £2.9bn over H1 18, an increase of £442m over the same period last year due to a decrease in the schemes’ liabilities and an increase in contributions, its half-year results have shown.

The value of Aviva’s assets totalled £18.9bn over the first six months of 2018, while its liabilities fell by £700m to £15.4bn on an IAS 19 accounting basis. Over the same period last year assets hit £19.2bn while liabilities were measured at £16.1bn.

The £3.5bn difference was balanced by a £606m insurance policy, bringing the scheme surplus to £2.9bn.

The firm contributed £129m into the scheme in the first six months of the year.

Remeasurements meant the scheme grew by £137m, driven by a £449m gain from a change in economic assumptions, offset by a £299m loss on return on scheme assets.

Aviva said: “The increase in the surplus during the period is primarily due to employer contributions into the schemes and remeasurements recognised in other comprehensive income. The remeasurements recognised are principally a result of widening corporate spreads in the UK, partly offset by lower inflation in the UK.”

Aviva’s pension deficits have remained steady over the past year and a half at roughly £1.4bn, made up of a £725m staff pension scheme obligation, £71m of restructuring provisions and £617m in other provisions.

Aviva’s long-term savings operation profit increased to £106m in H1 18, a 19 per cent increase over the same period last year.

Platform net flows totalled £2.2bn for the first sixth months of 2018, despite issues which affected independent financial adviser and customer functionality for up to six days in January when it changes platform providers to FNZ.

Platform assets under management grew by 12 per cent to £22.7bn in H1 18.

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