Aviva Plc has published its trading update for the first quarter of 2023 – a period in which chief executive Amanda Blanc believes the insurer delivered “encouraging” results.
During the first three months, Aviva’s general insurance gross written premium (GWP) rose 11% on a constant currency basis to £2.4 billion. Of the total GWP, £1.5 billion came from UK & Ireland; £0.8 billion from Canada. Both markets posted growth, of 13% and 9%, respectively.
Other key metrics include £102 million in sales for protection & health (up 11%); retirement sales worth £1.5 billion (up 17%); and wealth net flows of £2.3 billion (down 15%). The company’s group combined operating ratio stood at 95.4%.
Commenting on the Q1 figures, Blanc said: “We have delivered an encouraging start to 2023 and continue to build clear trading momentum. New business volumes are good, despite persistent economic uncertainty, and we delivered another quarter of strong growth across our diversified business.
“Private healthcare sales grew by 25%, as more individuals and companies are attracted to the benefits of private cover. The bulk purchase annuity market is very active due to the higher rate environment, and we have now completed over £2 billion of deals so far this year. Our workplace pensions business is also very buoyant, with flows up 25% due to 134 new scheme wins and higher wages feeding through to higher pension contributions.”
As for the general insurance business, the CEO attributed the unit’s growth to Aviva’s disciplined management of inflationary pressures and to the balanced mix across personal and commercial lines in the UK, Ireland, and Canada.
“Aviva is uniquely placed to successfully navigate the prevailing economic environment, and we continue to support our customers through this challenging time,” added Blanc. “We have market-leading positions in high-growth areas. We are financially strong with an attractive and growing dividend, and we are confident in the prospects for Aviva.”
What do you think about Aviva’s trading update? Share your thoughts in the comments below.
