Aviva (LSE: AV.) maintains its first-half dividend at 10p per share.
Aviva (LSE: AV) (NYSE: AV.US) edged 0.5p higher to 319p in early London trade following the publication of its half-year results.
The FTSE 100 (UKX) insurer and popular high-yield punt announced first-half operating profits down 10% to £935 million. Reasons cited for the setback included adverse exchange-rate movements, claims relating to bad weather, a disposal and higher restructuring costs.
Aviva's figures were also blighted by a £876 million goodwill write-off relating to the group's US operations.
However, the dividend was sustained at 10p per share.
Within the statement, Aviva revealed its general-insurance profits had improved 1% to £461 million, life-assurance profits had fallen 7% to £1,010 million and fund-management profits had dropped 10% to £38 million.
Aviva also confirmed a 'strategic plan' announced in July had remained on track. In addition, the firm reminded investors of "a new economic capital level of 160% - 170% of required capital".
Aviva declared a net asset value of 395p per share on a standard IFRS basis, as well as 421p per share based on a special industry measure called 'market consistent embedded value'.
John McFarlane, Aviva's chairman, said:
"While this has been a challenging first half, we are taking the necessary actions to improve our position going forward. This environment is likely to continue and therefore we expect second-half performance trends to be broadly similar to the first six months, but with higher restructuring costs as we implement our strategic plan."
Despite a recent rally, which has seen the price gain 20% from its summer low, Aviva's shares still look inexpensive on three basic valuation measures.
Doubling up the group's first-half underlying result gives possible full-year earnings of 46p per share, which would support a P/E of 7.
Furthermore, depending on which net asset value figure you believe, the 320p shares may represent either 81% or 76% of the insurer's balance sheet.
And assuming the second-half dividend follows the first-half trend and is maintained as well, a 2012 payout of 26p per share would provide an 8% income.
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> Maynard does not own any share mentioned in this article.
