Pre-tax profit at Aviva dropped 29% year on year to £1.07bn for the first half of 2020, as the provider pledged to transform its performance and improve efficiency.

Operating profit for the first half of the year dropped 12% to £1.2bn compared to the first half of 2019.

Basic earnings per share were down 29% to 20p (from 28.2p per share restated for the first six months of 2019).

The UK Life and Investments, Savings & Retirement arm saw a 16% growth in new business for the first half of 2020 on a present value of new business premiums basis.

Aviva appointed its new CEO Amanda Blanc last month after Maurice Tulloch stepped down after just 14 months for family reasons. 

In a statement Ms Blanc said the company will focus on its core business and will “take decisive action” and withdraw capital from areas where they cannot meet their strategic objectives.

She said: “We must transform our performance and improve our efficiency. This requires great customer service, stronger innovation and better use of our brand. Our transformation will be underpinned by continuing to manage our balance sheet prudently, reducing debt and increasing our financial resilience.”

Ms Blanc promised change will be quick and decisive. She said: “I have been CEO for one month and I am confident we have many of the ingredients to make Aviva a winner. From this moment on, we must deliver. Nothing else will do. My focus is making sure it happens and at pace.”

The provider also said it will take the opportunity of the current economic outlook to review their long-term dividend policy.

Ms Blanc said: “The Board has declared a second interim dividend in respect of the 2019 financial year of 6 pence per share. While the Board continues to monitor the impact of COVID-19 and the economic outlook, we have decided to take the opportunity to review our longer term dividend policy, in light of our strategic priorities and the future shape of the group, with the objective of a sustainable pay-out and lower levels of debt. We will update shareholders on all dividend matters, including the 2019 final dividend in the fourth quarter.”