Aviva’s UK general insurance business increases profits and volumes in 2017
Aviva said its UK business has “gone from strength to strength”, growing market share and profit in 2017.
UK general insurance made continued progress in 2017, increasing net written premiums by 4% while further refining product and channel mix, said chief financial officer Thomas Stoddard.
UK GI operating profit grew 4% to £408m (2016: £392m) due to improved underwriting.
UK GI combined operating ratio improved sharply to 93.9% from 106.3%.
| Aviva UK GI | 2017 | 2016 |
|---|---|---|
| Operating profit | £408m | £392m |
| Underwriting profit | £246m | £232m |
| UK GI COR | 93.9% | 106.3% |
| UK GI COR ex-Ogden | 93.9% | 93.9% |
Excluding the impact of the change in Ogden discount rate, the UK COR was stable at 93.9%, helping to generate underwriting result of £246m (2016: £232m). The long term investment return was consistent with the prior year at £163m (2016: £162m).
The insurer reported group operating profit up 2% to £3.1bn from £3.0bn, and said it expects this year to deploy £2bn of surplus cash. It will pay down £900m in debt, return more than £500m to shareholders and spend about £600m on bolt-on acquisitions.
Aviva said its overall general insurance net written premiums rose 11% to £9.14bn.
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