The British insurance giant Aviva has posted its trading results for the nine month period ended September 30, 2022. Underpinning the key figures announced, the insurer highlighted its continued strong trading momentum, driven by its diversified business model.
General insurance gross written premiums (GWP) rose 10% (7% at constant currency) year-on-year to £7.2 billion (approx. CA$11.16 billion) for 9M 2022. UK GWP jumped 7% to £3.9 billion, and Canada GWP was up 8% at constant currency to £3.0 billion. GI combined operating ratio (COR) remained strong at 94.3%, albeit up from 9M21’s 92.4%. Aviva noted that this reflects more normal claims frequency versus the same period last year and that the group continues to maintain a disciplined response to claims inflation.
Aviva’s UK&I Life value of new business (VNB) of £466 million for 9M 2022 represented a 46% increase year-on-year, driven by higher VNB in annuities & equity release of £143 million (up from 9M 21’s £16million). However, overall UK&I Life sales of £24.9 billion were down 1%.
Aviva noted that despite continued good sales growth of 3% in Wealth and 4% in Protection & Health, these were offset by lower Bulk Purchase Annuity (BPA) volumes as it remains selective and disciplined on price. The insurer saw strong net flows in Workplace of £4.1 billion, up 11%. However, overall Wealth net flows dropped 4% compared to 9M 2021, standing at £7 billion.
Aviva’s acquisition of Succession Wealth completed in August of the year, and Succession Wealth advisers can now access Aviva's platform and benefit from its competitive offering and access its multi-asset funds.
Commenting on the results, Amanda Blanc, group chief executive officer, said that trading is positive and Aviva’s performance is “consistently strong”. She credited the nine months results seen by the insurer as being due to its market leading positions, customer focus and the benefits of its diversified business across insurance, wealth and retirement.
“Our customers have continued to save for their future and protect what is valuable to them,” she said. “Flows in our Wealth business were encouraging and general insurance volumes continue to grow, especially in commercial lines. Profitability also remains robust across both life and general insurance.
“Aviva’s capital and liquidity position is strong and our high quality asset portfolio has performed well during the recent period of extreme market volatility.”
Blanc added that Aviva remains confident in its outlook and is on track to deliver its financial targets while trading momentum is building. Aviva’s dividend guidance remains unchanged and, as previously announced, it anticipates commencing additional returns of capital to shareholders with its 2022 full year results.
