Financial results season rolls on in the insurance sector, with Aviva moving into the spotlight today, revealing its Q3 2021 trading update – and for the general insurance side of the business, it was certainly something of a mixed bag.
In the UK, its personal lines business fell from £596 million to £572 million in Q3, while its commercial business shot up 16% to £615 million, up from £531 million in the same period a year earlier. Overall, GWP was up 5% to £1,187 million but its combined ratio suffered at 94.9%, compared to 88.9% a year earlier.
Elsewhere, in Canada, there was an overall jump in GWP from £864 million to £885 million – boosted by a 1% rise in personal lines (to £606 million) and a 6% rise in commercial lines (to £279 million). Its combined ratio in the country improved from 95.5% to 93.0%.
Meanwhile, in Ireland, GWP stayed flat at £101 million overall, with personal lines falling 15% to £53 million and commercial lines rising 26% to £48 million. Its combined ratio jumped from 89.1% to 89.7%.
When combined, the general insurance business saw a 3% jump in GWP at £2,547 million; while its combined ratio was hit – moving from 92.2% to 96.6%. For the nine-month period, general insurance GWP was up 5% to £6.5 billion.
The company had additional reasons to celebrate, however, with UK&I life sales of £25.3 billion over nine months, compared to £21.8 billion a year earlier, with strong growth in savings & retirement.
“Aviva has delivered strong performance in the first nine months. Record inflows in savings & retirement and excellent growth in general insurance support our confidence in Aviva’s growth potential,” said CEO Amanda Blanc. “Savings & retirement net flows were up 21% year-to-date, continuing the strong first half performance. Bulk annuity volumes accelerated sharply in the third quarter. General insurance premiums grew 5% year-to-date reflecting solid customer retention and new business wins, particularly in commercial lines.”
Blanc also commented on the company’s ongoing disposals – highlighting the completion of deals in France and Italy. She also mentioned that the company aimed to be net zero by 2040.
In a comment sent to Insurance Business, Adam Winslow, Aviva’s CEO UK & Ireland General Insurance, noted he was pleased with the growth of the UK G&I business, particularly during a period in which the UK has been opening up from the COVID restrictions.
"We have invested in our business, bringing in additional underwriting expertise, extending profitable areas such as high net worth and increasing our digital capabilities," he said. "We have continued to simplify our business, remaining resolutely focused on the immediate and long-term insurance needs of our customers. As we return to more normal conditions, motor claims are increasing as the roads become busier.
"Commercial lines has proven an engine room for growth with well-priced new business opportunities, strong customer retention and continued rate momentum. The growth in our retail personal lines business reflects the benefits of Aviva’s own brands on price comparison sites, which has helped to offset the soft market conditions and the lower sales through some of our distribution partners and reduced demand for travel insurance."
He also outlined that climate change would remain at the top of the company's agenda.
"Our Building Future Communities campaign sets out a clear call to action for government, industry and insurers to work together to construct, refit and repair properties to be resilient in extreme weather and to utilise materials that are sustainable in the long-term," he said.
"We are pushing forward with other practical, sustainable options for customers, including cover for electric vehicles on our motor policies and solar panels included on our home cover with no additional charge. Our renewable energy business is growing as we support commercial customers in onshore windfarms, solar power and battery storage."
