UK chief denies sacrificing profitability to win new business
Aviva UK chief executive Mark Hodges has hit out at those suggesting his company is offering bigger commissions to secure new business.
“It’s always great when the competition are carping at you because that means you have got them worried,” Hodges told Insurance Times today.
“You can see in our numbers what the commission ratios are – they are down year on year.”
Aviva’s UK general insurance commission ratio fell slightly to 21.1% in 2010 from 21.3% in 2009.
However, Aviva offered an additional 3% commission to selected brokers last year.
Hodges contends the profitability of the £50m of new corporate risks business written in 2010 is a case in point.
“You can see with the 81% combined ratio on that business that we haven’t been giving anything away.”
He adds that the £50m of corporate risks business, a line Aviva re-entered in 2010, was slightly below forecast.
“But the combined ratio of 81% [on that business] reflects the discipline we want to have towards profitability.”
Hodges’ comments came shortley after Aviva posted a strong UK GI result for 2010.
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