Aviva makes £700m profit but slashes dividend

General insurance and existing life business were the main drivers of the turnaround, accounting for around 80% of operating profits. Aviva's interim statement revealed it made an after-tax profit of £747m in the first six months of 2009. Operating profit fell 14% to just over £1bn. However, the firm has cut its interim dividend by 31% to 9p per share. The board says ongoing economic instability and a falling operating profit are key factors behind its decision to cut dividends. However, it also wants additional financial flexibility in order to take advantage of market opportuni...