Aviva plc reported a group adjusted operating profit before tax of £1.77 billion for the full year 2024, a 20% increase from £1.47 billion in 2023.
The result exceeded analyst expectations, which had forecast an average of £1.67 billion.
The UK & Ireland Insurance, Wealth & Retirement (IWR) Solvency II value of new business (VNB) reached £839 million, up from £781 million in the previous year. General insurance gross written premiums rose to £12.2 billion from £10.9 billion, in line with market expectations.
The undiscounted combined operating ratio (COR) for general insurance stood at 96.3%, improving slightly from 96.2% in 2023. The discounted COR improved to 92.2% from 92.7% the prior year.
December saw one of the biggest M&A deals in the insurer’s history, with Aviva agreeing to acquire Direct Line Group for £3.7 billion, following an initial offer of £3.3 billion in November. Analysts forecast the acquisition to bolster Aviva's position in the UK insurance market, particularly in motor and home insurance sectors.
In 2023, Aviva also reported a 9% increase in operating profit, reaching £1.47 billion, up from £1.35 billion in 2022. This growth was driven by a 13% rise in general insurance premiums, totalling £10.88 billion, compared to £9.75 billion the previous year.
The insurer’s interim results in Canada for the previous year also saw gains, with general insurance premiums increased by 10% to £2.196 billion.
Personal lines grew by 14%, driven by new business growth in auto and robust pricing actions on the existing portfolio. Commercial lines saw a 6% rise, benefiting from strong retention in a favourable rating environment and new business within the GCS segment.
The distribution ratio remained largely stable at 33.3%, compared to 33.1% in the previous year.
Solvency II operating own funds generation (OFG) was £1.66 billion, compared to £1.73 billion in 2023. Cash remittances increased to £1.99 billion, up from £1.89 billion. The Solvency II cover ratio stood at 203%, slightly lower than the 207% reported in 2023.
Aviva announced a dividend per share of 35.7p, unchanged from analyst expectations and up from 33.4p the previous year.
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