Aviva increases general insurance premiums by 16% to £2.7bn in strong Q1

In their results for the first quarter of 2024, Aviva has posted general insurance premiums of £2.7 billion, representing an increase of 16% from the prior year quarter.

Growth was heavily driven by both the UK & Ireland and Canada, with strong rates, new business, and customer retention.

UK general insurance premiums climbed 19% to £1.7 billion, with 27% growth in personal lines reflecting continued strong rate discipline in the high inflationary environment, and new business growth.

Canada general insurance premiums increased by 11% to reach £0.9 billion with personal lines up 16%.

Elsewhere Insurance (Protection & Health) sales in Q1 were up 5%, which was mostly driven by continued growth in Protection.

Wealth net flows of £2.7 billion were up 15% on the prior year period, with double-digit growth seen in Workplace, up 13%, and in Platform, which was up 24%.

Meanwhile, across Retirement, sales were up 13% as they reached £1.7 billion, compared to £1.5 billion from last year.

Aviva’s solvency II ratio, which measures capital levels compared to requirements, dipped to 206% from 207%.

Aviva noted that the reduction in the quarter of 1pp was primarily driven by the final dividend, share buyback and the acquisition of Optiom, partly offset by total capital generation in the quarter and completion of the sale of Singapore.

The company said that it remains confident in meeting the group targets that were outlined during their FY 2023 results, which includes an operating profit of £2 billion by 2026, and a Solvency II own funds generation of £1.8 billion by 2026.

Amanda Blanc, Group Chief Executive Officer, commented: “This is another set of excellent results, extending our track record of consistently strong trading. Our diversified business model is continuing to deliver, and we are growing right across the Group.

“We accelerated new business sales in our capital-light businesses: General Insurance premiums increased 16% to £2.7bn and our workplace pensions business generated net flows of £2bn as we won 136 new schemes. The bulk purchase annuity market also continues to be active, with Retirement sales up 13%.

“Aviva is in great health. We are financially strong, we are trading well, and our investments in new products and customer service are paying off. We have clear competitive advantages – in our brand, our scale, and our diverse business – which are driving consistently strong performance, and giving us real optimism about 2024.”

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