Aviva grew UK premiums 11% in commercial lines, which it put down to ’strong rate and new business growth in mid-market and specialty lines’
Insurance giant Aviva has achieved a gross written premium result of £5.3bn for the first half of 2023, representing a 12% increase year-on-year from its H1 2022 financial results.
According to H1 2023 financial results released this morning (16 August 2023), Aviva also saw its operating profit rise 8% year-on-year for H1 2023 to reach a figure of £715m – up from last year’s H1 figure of £661m.
These gains were made despite the insurer’s general insurance undiscouned combined operating ratio (COR) remaining stable, with only a marginal one percentage point increase from the same period last year to reach a figure of 94.8% for the most recent reporting period.
In the UK, undiscounted COR for Aviva’s general insurance business also grew marginally – rising from 95.3% in H1 2022 to 96.3% for the most recent period.
Amanda Blanc, group chief executive officer at Aviva, said: ”Our continued positive momentum continued in the first half of 2023 with a strong set of results and our diversified business model positions us well to navigate the current macroeconomic environment.
“This reinforces our confidence in the prospects, financial targets and outlook for the group.”
Blanc explained that Aviva had delivered an undiscounted COR of 94.8% “despite the ongoing impact of inflation, demonstrating the scale and diversification of [Aviva’s] general insurance business”.
In the UK, the firm grew premiums by 11% in commercial lines, which it put down to “strong rate and new business growth in mid-market and specialty lines”.
Aviva’s UK personal lines business also grew by 16% across H1 2023, with the firm noting the positive impact of its climate conscious digital motor product Aviva Zero and Quotemehappy Connect.
Blanc said: ”In general insurance, we remain focused on pricing appropriately for the ongoing inflationary environment.
”Overall, we expect the rating environment to remain favourable across both commercial and personal lines and expect the underlying COR to benefit from the earn through of rating actions already taken and still to come in the second half [of 2023].
“However, we wouldn’t expect the favourable weather and prior year claims development experience of the first half to necessarily repeat.”
Aviva added that it expected strong full year financial results for 2023, with group operating profit predicted to grow between 5% and 7% from a 2022 figure of £1.4bn.
Blanc concluded: ”Aviva today is a company with momentum and is transformed from a few years ago.
”Our performance is accelerating – we have invested in the right places and this is generating further growth.”
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