The results formed part of the first half year accounts published by parent company Aviva on Wednesday, which consolidates FPI’s performance within its Asian business operations.
Operating profit from Aviva’s Asian insurance business increased to £112m ($147.6m €132.6m), up from £75m in the first half of 2015, reflecting a full six-month contribution from Friends Provident International,” the company said in its results statement.
“Life operating profits increased to £118m (vs £79m in HY15) mainly as a result of [the] six month contribution to operating profit from Friends Provident International, compared to three months in the prior period, partly offset by the discontinuation of the group’s Bancassurance distribution agreement with DBS Bank,” it said.
The end of the deal with DBS Bank saw the value of Aviva’s new business in Asia fall to £61m from £76m over the same period of 2015, a drop of 23% on a constant currency basis. This primarily reflected a £10m fall in Singapore. However, Aviva said the impact would have been worse if not for higher sales of protection products through its independent financial adviser network.
Net written premiums for the general insurance and health business in Asia increased to £69m from £61m in the first half of 2015, up 9% on a constant currency basis, with strong sales in group and retail health schemes in Singapore.
Cost savings from FPI’s parent Friends Life and further inflows of assets under management from the group also contributed to the 13% increase in Aviva’s overall pre-tax profit for the first half of the year.
Aviva said the integration of Friends Life had generated cost savings of £201m to date, and was on track to meet its target of £225m in cost savings by the end of 2016.
Operating profit of Aviva’s fund management division was up 48% to £49m driven by the on-boarding of £45.1bn of Friends Life assets in 2015 and an additional £1.5bn which arrived in the first half of this year, the company said.