Aviva posts 13% spike in General Insurance GWP in 9M 2023 results

Aviva posts 13% spike in General Insurance GWP in 9M 2023 results | Insurance Business Canada

Insurance News

Aviva posts 13% spike in General Insurance GWP in 9M 2023 results

How did its UK & Ireland business fare year-on-year?

Insurance News

By
Mia Wallace

The British insurance giant Aviva plc has become the latest insurer to reveal how it fared in the first nine months of 2023, a period referred to by group CEO Amanda Blanc as one of “strong growth”. Aviva’s UK&I GWP rose 15% year-on-year while its Canadian GWP jumped 11% – both figures were attributed to strong rate, new business volumes and retention.

Aviva saw gross written premium (GWP) for its General Insurance business rise 13% to £8 billion, compared to £7.2 billion for 9M 2022. Meanwhile, sales in its Protection & Health business spiked 23% in the period, reflecting strong growth in Individual Protection, and Health.

The group’s undiscounted combined operating ratio (COR) stood at a still-healthy 96.3% but was up from 9M 2022’s 94.2%, which Aviva said reflected the impact of Q3 wildfires and other adverse weather in Canada – offset by continued rate increases and disciplined underwriting. On a discounted basis the Group COR was 92.5% (compared to 93.1% last year).

In the trading statement, Aviva affirmed its confident outlook and said its continued momentum and consistent delivery reinforces its confidence in the group’s prospects, financial targets and outlook. The insurer also said it remains on track to exceed its medium-term targets and expects to deliver its target of £750 million gross cost reduction by 2024 one year early.

Commenting on the results, Blanc highlighted the insurance giant’s “clear trading momentum” and how this is being driven by its uniquely diversified business and leading positions in growing markets.

“We have continued to expand our capital-light businesses, which now make up over half of our portfolio,” she said. “We see significant opportunities to generate further higher return, capital-light growth in the future as we prioritise these segments.

“General Insurance premiums grew 13%, reflecting the strength of our operations in the UK, Canada and Ireland, across both commercial and personal lines. Our workplace pensions business continues to shine, with flows up 26% on the back of over 350 new corporate customers, and higher auto enrolment contributions due to wage inflation. Health sales are also buoyant, up 56%.”

Blanc emphasised that customers are Aviva’s “number one focus” and shared how the insurer supported them with claims following wildfires, hail and flooding in Canada and after storms Babet and Ciarán in the UK.

“Aviva’s prospects are very positive,” she said. “We expect to beat our medium-term financial targets and, in line with previous guidance, grow operating profit by 5-7% this year, despite higher weather-related claims.

“I am extremely confident that Aviva will continue to deliver more for shareholders, and we reiterate our guidance for a total dividend of c.33.4p for 2023, and further regular and sustainable returns of surplus capital.”