Aviva refuses ‘to chase unprofitable’ commercial lines business amid soft market as GWP tumbles 4% in HY results – Jason Storah

Insurer Aviva is “very focused” on its “technical rate strength” in commercial lines and “walking away” from new and renewing business in this class that is deemed unsustainable as soft market conditions dent year-on-year underwriting profit, according to Jason Storah, the firm’s UK and Ireland general insurance chief executive.

Aviva published its 2026 half-year financial results on 14 August 2026, depicting an overall 43% improvement in year-on-year gross written premium (GWP) for its UK and Ireland general insurance arm.

Across the insurer’s personal and commercial lines books in this geography, GWP amounted to £5,910m for the first six months of 2026, compared to £4,141m for 2025’s first half.

Although these headline figures are positive, the detail of Aviva’s reporting revealed a more nuanced story, with UK personal lines GWP skyrocketing by 98% between H1 2025 and H1 2026 – aided by the insurer’s acquisition of Direct Line Group (DLG) in July 2025 – while its UK commercial lines book saw GWP fall by 4%.

In monetary terms, GWP dropped from £2,008m in 2025’s H1 to £1,927m for the same reporting period this year.

Speaking exclusively to Insurance Times, Storah noted that the slight downturn in Aviva’s UK and Ireland commercial lines portfolio can largely be attributed to current soft market conditions – which he predicted are likely to continue until at least H2 2027.

This cyclical pinch is particularly being felt in Aviva’s global corporate and specialty (GCS) division, he added.

“We know property and casualty insurance is a very cyclical market and we’re in a part of the cycle where that downward pressure has been not insignificant,” Storah said.

“I would say [there is] probably more downward pressure in our GCS book. At some point, we’ll start to see rates tick up. But we certainly think there’s continued downward pressure for the foreseeable future.”

To combat this detrimental impact of the soft market on Aviva’s commercial lines book, Storah noted that the insurer is remaining “very focused on our technical rate strength”, as well as carefully reviewing the business it takes on.

The chief executive continued: “We’re not chasing top line. In a softening market, if you’re chasing top line, it can get you into trouble. We’re very focused on our technical rate strength. We are walking away from new and renewal pricing of business that we don’t think is sustainable.

“We’re just not going to chase unprofitable business or margin, or lines that are particularly distressed, or pricing with competitors [that] are perhaps being a bit more short term or don’t have the level of data and sophistication that we have.”

Soft market scene setting

The story between Aviva’s personal and commercial lines portfolios is chalk and cheese within its 2026 half-year reporting.

For Storah, there are an abundance of reasons why commercial lines books are more affected by current soft conditions versus personal lines.

He explained: “You’ve got more capacity in the commercial lines market and you’ve got a bit more fragmentation. You’ve got MGAs that have come into the space. You’ve got alternative capital [and] various capital sources looking for returns. And when they’re looking at the commercial market and combined operating ratios in the 80s, 90s – maybe some of the specialty carriers still in the high 70s – that looks attractive.

“So, when capacity floods in, it exacerbates that soft market cycle.”

Greg Neilson, chief financial officer for Aviva’s UK and Ireland general insurance business, added that personal lines has not been unscathed from the reach of soft market ramifications – just that this part of the insurance market is operating on a different timeline.

He told Insurance Times: “You’ll see [differentiation between commercial and personal lines] more in the [market’s financial] results this year. But personal lines has been through its own cycle. It’s just a bit quicker and probably further through it. That’s why it’s less of a narrative.”

In terms of how long Aviva will need to weather the soft market storm, Storah thinks that “next year, we might start to see one or two lines at least bottom out and maybe see areas where there’s a bit of rate creep upwards”.

One example here would be the “little bit of green shoots” he has spotted in commercial motor.

However, he emphasised that Aviva does not have a “crystal ball” and with partner broker predictions spanning commercial rate changes from “low to mid-single digits” all the way through to “10% to 20%”, the insurer is simply preparing to buckle up and stick to its guns.

Storah continued: “At some point, the market does need to turn. It’s hard to see it turning this year. We just think, hopefully, [that in the] second half of next year, we’ll see some longer-term views prevail.”