The company experienced a notable 15% year-on-year increase in Gross Written Premiums (GWP) for its UK & Ireland segment, while its Canadian GWP saw an 11% surge.
These impressive figures were attributed to robust rate structures, increased new business volumes, and strong client retention.
Aviva’s General Insurance business witnessed a significant rise of 13% in gross written premiums, reaching £8 billion compared to £7.2 billion in the same period in 2022. Concurrently, the Protection & Health business reported a remarkable 23% spike in sales, driven by robust growth in Individual Protection and Health offerings.
While the group’s undiscounted combined operating ratio (COR) remained healthy at 96.3%, it marked a slight increase from the 94.2% recorded in 9M 2022. Aviva attributed this shift to the impact of Q3 wildfires and adverse weather conditions in Canada. However, the company emphasised that the impact was mitigated by sustained rate increases and disciplined underwriting. On a discounted basis, the Group COR was reported at 92.5%, compared to 93.1% in the previous year.
Aviva expressed confidence in its outlook, citing continued momentum and consistent delivery as factors reinforcing its belief in the group’s prospects, financial targets, and overall outlook. The insurer remains on track to surpass its medium-term targets and anticipates achieving its goal of £750 million in gross cost reduction by 2024, one year ahead of schedule.
In her remarks on the outcomes, Blanc underscored the insurance giant’s “clear trading momentum,” attributing it to the company’s distinctive business diversification and prominent positions in expanding markets.
She said: “We have continued to expand our capital-light businesses, which now make up over half of our portfolio. 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 stressed that Aviva prioritises customers as its primary focus, highlighting the insurer’s commitment to supporting them through claims processes in the aftermath of wildfires, hail, and flooding in Canada, as well as in the aftermath of storms Babet and Ciarán in the UK.
“Aviva’s prospects are very positive. 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.
She added: “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.”
