Insurance giant Aviva has today announced its full-year results for 2023, with group CEO Amanda Blanc (pictured) pointing to its “significant progress”.
Among the key financials posted by the insurer, Aviva recorded an operating profit increase of 9% to £1.47 billion, up from £1.35 billion in 2022 and announced a new £300 million share buyback programme.
Aviva’s general insurance business showed strong growth with premiums up 13% to £10.88 billion, compared with £9.75 billion in 2022. Its undiscounted combined operating ratio (COR) came in at 96.2% for the year, up from 95.2%.
Aviva’s UK&I general insurance business saw premiums rise 16% year-on-year to £6.64 billion, with an undiscounted COR of 96.8%, up slightly from 2022’s 96.4%.
The insurer also highlighted that its personal lines premium grew 24%, which it credited to strong rate discipline in the inflationary environment and new propositions. Meanwhile, its UK commercial lines premiums grew 10% due to rate actions and new business growth.
In Canada, Aviva’s general insurance business saw premium growth of 10% to £4.25 billion, but its undiscounted COR was up to 95.3%, from 2022’s 93.7%. Its figures included growth of 13% in commercial lines and 9% in personal lines, driven by rate increases and strong new business growth.
The insurer’s protection and health business saw its sales increase by 16%, attributed to strong growth in health (up 41%) and individual protection. However, its wealth arm took a dip, which Aviva noted reflected challenging market conditions, with net flows of £8.3 billion, compared to £9.1 billion in 2022.
Commenting on the results, Blanc noted that, with sales up, costs down and an operating profit increase of 9%, “[Aviva’s] position as the UK’s leading diversified insurer, with major businesses in Canada and Ireland, is clearly delivering.” She also highlighted the group’s strong organic growth, especially in its capital-light businesses, and its strong general insurance premiums performance in Canada and the UK.
“Aviva is financially strong,” Blanc said. “We are trading consistently well. Our prospects have never been better. We have leading businesses in growing markets, a fantastic brand, and we are investing substantially to make service better for our 19 million customers. All the ingredients are in place to ensure Aviva continues to deliver an outstanding performance for our customers and our shareholders. I’m certain we will.”
Jason Storah, who was named CEO of Aviva’s UK&I general insurance business in August of last year also commented on the “strong set of results” delivered and paid tribute to his colleagues and the support of Aviva’s brokers in partners in helping to deliver them.
He noted that its personal lines business delivered a particularly strong performance and that in UK commercial lines, the insurer has seen double-digit growth, with strong retention and new business.
“I’m also excited by our recently announced acquisition of Probitas,” he said. “This is a high performing business and when combined with our already strong global, corporate and speciality underwriting capabilities and broker relationships, this presents a great opportunity for future growth.”
Storah highlighted that while 2023 was not without its challenges, Aviva’s focus is on being there for its customers and he looked to the example set by how the insurer’s teams worked to support customers during the storms and floods that hit the UK in recent months.
“As we look to the rest of 2024, we’re confident that with our brand, capabilities and strong distribution relationships, we will build on our success,” he said. “Once again, thank you to everyone involved in making 2023 such a successful year. I’m proud to be a part of this team.
