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Aviva has outlined the underwriting profit growth targets it wants to achieve in its UK general insurance business between now and 2020.

The insurer told analysts at its capital markets day on Wednesday that it expected its personal specialty business to produce the most profit growth over the next four and a half years.

But it added that commercial motor, which was the company’s worst performing line in 2015 from an underwriting perspective, would remain flat (see table below for full breakdown).

The company is seeking mid-single-digit profit growth across the whoe UK general insurance book.

Aviva’s profit growth targets

Business line 2016-2020 growth ambition
Personal lines  
Personal motor 1-2%
Homeowner 2-4%
Personal specialty 6-10%
Commercial lines  
Commercial motor Level
Property/liability 3-6%

Source: Aviva

Aviva is seeking underwriting profit growth of between 6% and 10% in personal lines specialty between now and 2020.

Aviva global general insurance chairman Maurice Tulloch said “Speciality lines offer strong growth potential across a number of lines: high net worth, boiler and machinery, travel, mobile device insurance and antique cars, just to name a few.”

The company is also seeking underwriting profit growth of between 1% and 2% in personal motor and between 2% and 4% in homeowner.

Tulloch said: “We are continuing to see improving trends in the motor book based on hardening of about 7% over the last 12 months.

“The homeowners book remains competitive and despite recent weather events we are well positioned with the broadest distribution footprint in the market to grow this very attractive segment.”

However, commercial motor underwriting profit is expected to be flat over the next four and a half years.

Tulloch said: “The commercial motor market remains soft and while there has been significant improvement in our combined operating ratio over the last few years, this result [a 99% COR in 2015] for me is unsatisfactory.”