One insurer is definitely upbeat on its third quarter numbers – but admits there is still a lot of work ahead to realize its goals.
“
Aviva’s turnaround is delivering. Our key metrics have improved again,” Said Mark Wilson, group chief executive officer for
Aviva Plc. “Year to date, our net asset value is 10 per cent higher; value of new business is up 15 per cent and the general insurance combined ratio improved to 95.9 per cent.
“The steps we have taken to focus and strengthen the (Aviva) Group mean we are in a different position to two years ago.”
The value of Aviva Group’s new business grew to £690 million ($1.24 billion), through a balanced product mix with VNB split 36 per cent protection, 35 per cent savings and 20 per cent annuities, according to the Aviva report.
During the same quarter for 2013, new business amounted to £619 million ($1.11 billion).
From a Canadian perspective, Aviva’s combined operating ratio of 96.8 per cent (compared to 95.2 per cent for the same quarter in 2013) was impacted by worse weather and fire losses.
Group-wide, the COR for all of Aviva’s operations was 95.9 per cent, down slightly from Q3 2013’s percentage of 96.9.
Although the numbers are headed in the right direction, Wilson said that there is still work to be done.
“Notwithstanding this progress,” he said, “there is still more to do before we can be satisfied we are fully delivering on our investment thesis of cash flow plus growth.”
