Insurer Aviva slides into huge net loss on US exit

March 7, 2013

Aviva headquarters in London pictured in October 2009. The insurer said it slumped into a net loss of £3.0 billion ($4.5 billion, 3.5 billion euros) last year, mainly owing to a massive writedown following the sale of its US business.

AFP - British insurer Aviva said it slumped into a net loss of £3.0 billion ($4.5 billion, 3.5 billion euros) last year, mainly owing to a massive writedown following the sale of its US business.

Aviva said its 2012 earnings after tax compared with a net profit of £60 million in 2011.

Aviva meanwhile reported underlying operating profit -- an indicator of its day-to-day business -- of £1.78 billion, the company said in an earnings statement.

"The £3 billion loss after tax is driven principally by writedowns we have previously announced due to the agreed sale of our US business," company chief executive Mark Wilson said in the release.

"Operating profit levels were healthy across our major businesses, especially in the UK, France and Canada," he added.