Aviva unveils Q1 2024 results

Performance of each segment outlined

Aviva unveils Q1 2024 results

Insurance News

By Roxanne Libatique

Aviva plc (Aviva) has released its financial results for the first quarter of 2024 (Q1 2024), showing growth across various business segments and maintaining a solid capital position.

Key financial metrics

For Q1 2024, Aviva’s insurance premiums increased by 16% to £2.7 billion, up from £2.4 billion in Q1 2023. Additionally:

  • protection & health sales rose by 5% to £106 million compared to Q1 2023;
  • wealth net flows climbed by 15% to £2.7 billion from the previous year’s £2.3 billion;
  • retirement sales grew by 13% to £1.7 billion from £1.5 billion in Q1 2023; and
  • solvency II cover ratio was stable at 206%, slightly down from 207% at the end of 2023.

Commenting on the company’s performance, Aviva group CEO Amanda Blanc (pictured) said: “This is another set of excellent results, extending our track record of consistently strong trading. Our diversified business model is continuing to deliver, and we are growing right across the group.”

Aviva segments’ performance for Q1 2024

Aviva bolstered new business sales in its capital-light businesses:

  • The group’s general insurance premiums grew by 16% to £2.7 billion for Q1 2024. Its UK premiums rose by 19% to £1.7 billion, while Canada saw an 11% increase to £0.9 billion.
  • Combined operating ratio (COR) stood at 95.8%, with the UK improving to 97.3% and Canada at 93.7%.
  • Wealth net flows were up 15% to £2.7 billion, with double-digit growth in workplace net flows (13%) and platform net flows (24%).
  • Retirement sales increased by 13% to £1.7 billion, driven primarily by bulk purchase annuity (BPA) volumes.

Aviva’s capital and liquidity status for Q1 2024

Aviva’s solvency II shareholder cover ratio was estimated at 206% for Q1 2024, reflecting a minor decrease due to dividend payments, share buybacks, and acquisitions.

Its centre liquidity amounted to £2.1 billion as of April 2024, bolstered by proceeds from acquisitions and disposals offset by share buybacks. The £300 million buyback program has been progressing as planned, while the final dividend paid out hit 22.3p per share as of May 23.

Aviva’s strategic transactions for Q1 2024

Aviva has continued to execute strategic deals to enhance shareholder value:

  • Acquisition of Optiom: completed for £100 million, enhancing growth in Canada.
  • Probitas acquisition: announced a £242 million acquisition, expanding Aviva’s footprint in the Lloyd’s market, expected to complete mid-2024.
  • Singapore exit: completed for £937 million.
  • AIG UK protection business: acquired for £453 million, expanding distribution to over 2.5 million customers.

This month, Aviva teamed up with risk management company RiskEye to add online risk and reputation support as a standard feature of its cyber insurance offering.

Aviva’s performance outlook

Aviva remains confident in achieving its targets set for 2026:

  • operating profit is projected at £2 billion;
  • solvency II own funds generation aims for £1.8 billion; and
  • cash remittances are expected to exceed £5.8 billion between 2024 and 2026.

The company will continue focusing on appropriate pricing in general insurance, expecting strong demand in the protection and health segments. Additionally, wealth presents significant opportunities for sustainable, capital-light growth.

Jason Storah on Aviva’s UK & Ireland General Insurance business

Also commenting on the Q1 2024 trading update was Jason Storah, CEO, of Aviva UK & Ireland General Insurance who said he’s pleased to share that the business’s underlying trading momentum has continued, delivering a strong start to the year for the UK and Ireland General Insurance business.

“Our UK Personal Lines business has produced a very strong performance of double-digit growth, and I’m delighted to see so many existing Aviva customers choosing to take out further policies with us,” he said. “Our UK Commercial Lines business has delivered great mid-market retention, alongside new business growth across our speciality and SME lines.

“Progress in our Global Corporate & Specialty business provides a brilliant foundation as we head towards the completion of our acquisition of Probitas. In Ireland, our growth reflects strong rate and retention in both personal and commercial lines.”

Storah added that despite an “unsettled” start to the year amid storms Isha and Jocelyn, Aviva has maintained focused rating discipline across all lines of business.

“Over the last few months I’ve been able to meet many of the colleagues, brokers and partners who have supported our customers over this quarter and contributed to this success,” he said. “A massive thank you to all for your efforts. Without you, none of this is possible.”

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