Aviva Canada's overall combined ratio improved in the first half of 2026, but the result doesn’t fully reflect the split that exists between two very different books of business in Canada right now.
According to Nav Dhillon (pictured), CEO of Aviva Canada, personal lines drove the improvement, while commercial lines moved in the wrong direction, a deterioration Dhillon said reflects deliberate discipline rather than a loss of control.
The overall combined ratio improved 1.7 percentage points year-over-year, while commercial lines specifically worsened by 1.3 percentage points to 94.0%, driven largely by a run of elevated large losses during the first half.
Dhillon said the contrast between the two books comes down to strong personal lines performance carrying the overall number, even as commercial lines faced real pressure that the company chose to absorb rather than chase away through aggressive pricing.
"Our results were driven by really strong performance in personal lines and disciplined execution in commercial lines," Dhillon said. "We do not want to ride a soft market. We're consistently focused on that."
That framing matters for how brokers should read the numbers, since a rising commercial combined ratio in isolation might otherwise look like a company losing control of its book, rather than one deliberately declining to compete purely on price in a softening market.
Dhillon said Aviva's biggest growth push this fall centers on two fronts: a technology upgrade on the personal lines side, and the long-awaited full rollout of a small business commercial product that brokers have been requesting for years.
On personal lines, Dhillon said the company will begin rolling out an upgrade to its GuardWire platform this fall, part of a broader modernization effort meant to give brokers faster, easier tools to serve customers who increasingly expect more choice and flexibility when buying coverage. He tied the initiative directly to shifting customer expectations, noting that Canadians increasingly want more options and control when purchasing insurance, and that the platform upgrade is designed to help brokers meet that expectation without added friction.
On the commercial side, Dhillon said the small business product, already tested through a pilot earlier this year, is set for full rollout this fall after sustained investment in making it simple for brokers to transact.
"We've been investing behind the scenes on the capability to make it very easy for brokers to transact with us," Dhillon said. "We're really, really excited about that launch."
He said the product fills a gap brokers have flagged repeatedly for years, and represents a meaningful growth opportunity for the company heading into next year, particularly as commercial competition intensifies elsewhere in the market.
Asked about the biggest headwind facing the market right now, Dhillon pointed immediately to catastrophe activity, citing the ongoing wildfire situation in British Columbia as an example of how quickly claims volume can escalate.
"Catastrophes are obviously the biggest thing for us right now," Dhillon said, noting Aviva was the first insurer to mobilize a claims team in Penticton early in the response effort. He added that industry-wide claims had already surpassed 100,000 by the end of June, underscoring how frequent and costly these events have become across the country, not just in disaster-prone regions.
Looking ahead, Dhillon said he expects overall market conditions to remain broadly stable through the rest of 2026, though with distinct dynamics across lines. Personal insurance conditions should stay generally supportive, he said, while Alberta's upcoming auto reform, taking effect January 1, is likely to introduce some competitive repositioning among insurers heading into 2027 as the market adjusts to the new framework.
On property, Dhillon expects conditions to stay relatively firm given recent catastrophe experience and elevated weather-related risk nationally. Commercial lines, by contrast, will likely keep facing pressure from rising market capacity and competition, weighing on both retention and pricing across multiple segments as more capital enters the space.
"We do see the increased market capacity and heightened competition continue to place pressure on retention and pricing across many segments in the Canadian commercial landscape," Dhillon said.
Asked how the company plans to navigate that pressure without simply competing on price, Dhillon framed discipline as a long-term strategy rather than a short-term reaction to market softness.
"Relentless focus on underwriting discipline," Dhillon said. "Relentless focus on serving brokers and customers exceptionally well, and investing in our business and capabilities for the long term to ensure that we're well positioned for success over all insurance cycles."
