Insurance giant Aviva has today announced its full-year results for 2023, with group CEO Amanda Blanc (pictured) pointing to its “significant progress”.
Among the key financials posted by the insurer, Aviva recorded an operating profit increase of 9% to £1.47 billion (approx. CA$2.53), up from £1.35 billion in 2022 and announced a new £300 million share buyback programme.
Aviva’s general insurance business showed strong growth with premiums up 13% to £10.88 billion, compared with £9.75 billion in 2022. Its undiscounted combined operating ratio (COR) came in at 96.2% for the year, up from 95.2%.
Aviva’s UK&I general insurance business saw premiums rise 16% year-on-year to £6.64 billion, with an undiscounted COR of 96.8%, up slightly from 2022’s 96.4%.
The insurer also highlighted that its personal lines premium grew 24%, which it credited to strong rate discipline in the inflationary environment and new propositions. Meanwhile, its UK commercial lines premiums grew 10% due to rate actions and new business growth.
In Canada, Aviva’s general insurance business saw premium growth of 10% to £4.25 billion, but its undiscounted COR was up to 95.3%, from 2022’s 93.7%. Its figures included growth of 13% in commercial lines and 9% in personal lines, driven by rate increases and strong new business growth.
The insurer’s protection and health business saw its sales increase by 16%, attributed to strong growth in health (up 41%) and individual protection. However, its wealth arm took a dip, which Aviva noted reflected challenging market conditions, with net flows of £8.3 billion, compared to £9.1 billion in 2022.
Commenting on the results, Blanc noted that, with sales up, costs down and an operating profit increase of 9%, “[Aviva’s] position as the UK’s leading diversified insurer, with major businesses in Canada and Ireland, is clearly delivering.” She also highlighted the group’s strong organic growth, especially in its capital-light businesses, and its strong general insurance premiums performance in Canada and the UK.
“Aviva is financially strong,” Blanc said. “We are trading consistently well. Our prospects have never been better. We have leading businesses in growing markets, a fantastic brand, and we are investing substantially to make service better for our 19 million customers. All the ingredients are in place to ensure Aviva continues to deliver an outstanding performance for our customers and our shareholders. I’m certain we will.”
