It’s the turn of British insurance giant Aviva Plc to reveal how it fared in the first quarter of 2021.
In its Q1 trading update, Aviva pointed to “significant” financial strength in the period, with the insurer’s Solvency II shareholder cover ratio at 209% and Solvency II debt leverage ratio at 28%. It also cited “substantial” return of capital to shareholders following completion of previously announced disposals.
Aviva – which in recent months has sold eight businesses, in line with its portfolio revamp – reported the following figures for the first quarter:
|
Unit |
Result |
|
Workplace |
£1.5 billion in net flows, up 26% |
|
Adviser platform |
£1.4 billion in net flows, up 29% |
|
Annuities and equity release |
£1 billion in present value of new business premiums, down 52% |
|
General insurance – commercial lines |
£868 million in gross written premium, up 11% |
|
GI – personal lines |
£1.1 billion in GWP, down 1% |
“We made very good progress in the first quarter,” said group chief executive Amanda Blanc. “We concluded the refocus of our portfolio, selling eight non-core businesses which will generate total cash proceeds of £7.5 billion once completed.
“We have made excellent headway in reducing leverage with debt reduction of £1.9 billion in the first half of 2021 and we expect the leverage ratio to be around 26% at the half year.”
Blanc added: “We are now focussed on improving the growth and profitability of our businesses in the UK, Ireland, Canada, and Aviva Investors. We are pleased with the growing momentum in key areas as we capitalise on our leading market positions.”
In the UK, there was continued rate momentum and strong performance in commercial lines that helped secure 17% growth in global corporate and specialty lines. SME sales grew 10%, and the personal lines business achieved stable sales and growing market share.
Overall, GWP across the UK, Ireland and Canada went up by 4% to £2 billion, including 6% growth in the UK. In the UK, GWP came in at £1,195 million with a combined operating ratio of 92.1% - a significant improvement on last year’s 133.5% in the same quarter.
