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Aviva platform reports £13m loss

Money-Cash-Coins-GBP-Pounds-UK-700x450.jpgAviva’s platform has reported a loss of more than £13m in 2017, according to results filed to Companies House.

While the loss is an improvement from the £18.7m reported in 2016 on the back of higher revenue from increased assets under administration, the results come amid a glitch-ridden technology upgrade for the platform.

Revenue in 2017 increased to £13.6m from £9.5m in 2016 and AUA grew from £4.6bn to £6.6bn.

The accounts also detail a charge Aviva Wrap must pay to parent Aviva Life Services UK for “operational assets and services” provided to the platform. The charge in 2017 was £30.2m, compared to £33.4m in 2016.

The company’s loss is listed as a “going concern” in the statement.

It says: “The company is currently loss-making and, as such, is dependent on continuing finance being made available by its parent entity, Aviva Life Holdings, to enable it to meets its regulatory solvency requirements. At 31 December 2017, the company has sufficient cash available to cover its total liabilities.

“After making enquiries, the directors have a reasonable expectation the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.”

Aviva is expecting new business sales to continue to grow in 2018.

So far this year, Aviva has been dealing with problems related to its replatforming to FNZ software, which took place in January but resulted in numerous problems for advisers.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Expect the asset growth to stall this year and losses to widen again after the debacle of the replatforming exercise.

  2. Stephen Kadwell 30th April 2018 at 7:40 pm

    I expect them to hemorrhage assets, following the replatforming disaster. The final straw on Friday was being expected to wait 20 mins for my call to be answered and offered a choice of music while I waited: press 1 for soul, 2 for classical etc.

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