The adviser platform’s net inflows were up 6% to £3.7bn, compared with £3.5bn at year end 2019.
The provider claims its adviser platform had a 14% market share of net flows in 2020.
Amanda Blanc, CEO of Aviva, highlighted the platform as one of the potential growth opportunities for the insurance and investment giant. She said: “The complexity and flexibility of the UK pension and savings system as well as the ageing population, which includes wealthy baby boomers reaching retirement, has accelerated the need for financial advice and for platform solutions that help financial advisers to look after their clients’ assets more effectively and efficiently.”
Across Aviva’s savings and retirement business, net flows increased by 14% to £8.5bn (2019: £7.5bn) with the highest net inflows see across the workplace and platform businesses.
Operating profit for the division increased to £119m (2019: £88m) driven by higher revenues from an increased asset base. The division ended the year with £128bn, a rise of 13% (2019: £113bn).
The results come at the time of difficulty for the insurance and investment giant. A tough few years have led the provider to cut back on its international businesses in order to focus on the UK savings, retirement, life insurance, protection and health businesses.
In its annual results, Aviva added the remainder of its Italian operations to the list of its businesses being sold. The sales of Aviva France and Aviva Italy are expected to complete this year, building on the previous sales of its Singapore, Vietnam, Hong Kong, Indonesia and Turkey operations.
In 2020, Aviva’s UK and Ireland Life businesses operating profit decreased 3% to £1,907m (2019: £1,974m). Strong performances in bulk purchase annuities and savings and retirement, and a positive but lower benefit of assumption changes, were offset by the impact of the Coronavirus pandemic on new business sales of equity release and individual protection products.
Aviva’s asset management business, Aviva Investors, had £366bn of assets under management at the end of 2020 including £292bn of assets managed for Aviva companies. However, the investment arm’s operating profit was 11% lower in 2020 at £85m (2019: £96bn). Total net flows were significantly improved at £8.5bn in comparison to outflows of £2.8bn in 2019.
In the annual results, Ms Blanc outlined the ambition for Aviva Investors to become a leader in sustainable/ESG investing. Aviva Investors launched the UK’s first ethical fund range in 1984 and in 2020 the provider had £12bn invested in sustainable investment strategies.
Ms Blanc said: “Sustainable or ESG investing is becoming hugely important, providing active asset managers with an opportunity to meet this growing client demand and to contribute to society as a whole.”