Aviva: profits and prices

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Thu, 26/08/2010 - 14:43

Record profits, but increasing prices for the insurance firm Aviva have seen an influx of mixed feelings towards the brand from the British public.

BrandIndex measure 'Attention', which records how many people are talking about the brand, peaked at 20.9 on August 18th, the highest score since February 2010, while 'Buzz', which measures whether people are talking positively or negatively, has retained a stable score of between 6 and 8, suggesting that while the recent profits have increased the brand's visibility, feelings towards the firm have been mixed, leading to a static 'Buzz' score.

Indeed, the mixed results may be a reflection of the firm's recently posted record increase in profits of 21% to £1.27bn reported in the Guardian on 13th August, as sales of long-term savings products rose 4% to more than £20bn in the past twelve months. Aviva has also had an increased presence in the public domain following the revelation that the company recently rejected a £5 billion takeover bid from rival RSA.

However, despite the increase in profits the company said it imposed double digit increases in motor insurance over the past 6 months and warned this trend could be set to continue. David MacMillan, Head of Aviva General Insurance UK, commented on the price increase, saying, "There is no sign of a let-up in this inflation, so I expect this market phenomenon to continue.".

Aviva recently moved to the UK life and pensions sector, arguing that this would make the company 'more resilient in times of economic trouble'. The firm is hoping to benefit further from the $1.7 trillion sum estimated to be invested in life policies and pensions in the UK and Europe over the next five years.

Aviva's 'Buzz' and 'Attention' scores
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