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.
“This was a truly stand-out year for our UK and Ireland General Insurance business, with significant progress across the board,” UK and Ireland General Insurance CEO Jason Storah (pictured above) said.
The insurer’s UK personal lines saw double-digit growth, with a 10% rise in customer numbers. Storah attributed the gtrowth to increased volumes in the retail business, expansion through price comparison sites, and continued development of Aviva Zero, the company’s carbon-conscious car insurance product. The number of customers holding multiple Aviva products also increased.
UK commercial lines also reported growth across small and medium-sized enterprises (SMEs) as well as Global Corporate and Specialty Lines. Aviva enhanced its underwriting capabilities through more than 600 underwriting licence upgrades and expanded its regional presence with new branches and additional resources in existing locations.
“In 2024, we achieved significant milestones through acquisitions and partnerships,” Storah said. “We completed our acquisition of Probitas, allowing us to expand our underwriting territories through Lloyds, and we’ve launched our travel insurance partnership with Nationwide Building Society.”
The company expanded its product offerings to meet cost-conscious customer needs. QuoteMeHappy Motor Essentials provided cover to more than 175,000 customers, while QuoteMeHappy Connect offered personalised premiums to young drivers based on driving behaviour.
Aviva also invested in claims service improvements, adding three new Solus vehicle repair centres, including its largest site in Dunstable. In claims handling, the company deployed generative AI to assist handlers by summarising key information.
To address the impact of extreme weather events, Aviva has committed over £80 million to nature-based solutions projects across the UK. These initiatives focus on carbon capture, flood resilience, and habitat restoration.
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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