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Aviva’s growth continues thanks to higher prices and workplace pension flows

Aviva reported general insurance premium growth of 16 per cent in the first quarter
Aviva reported general insurance premium growth of 16 per cent in the first quarter

Insurance giant Aviva has reported a jump in revenue and insurance income in the first quarter as well as strong growth at its pension arm.

The company reported a 16 per cent jump in general insurance premiums in the first three months of 2024, with overall premiums written rising to £2.7bn up from £2.4bn in the first quarter of 2023.

UK general insurance premoums rose 19 per cent with 27 per cent growth in personal lines reflecting “continued strong rate discipline in the high inflationary environment.”

Aviva’s Canadian business reported growth of 11 per cent. New business growth and higher prices also drove growth in this market.

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Demand for health insurance also boosted the company’s top line. Sales at its protection and health arm rose five per cent to £106m.

Overall, on the insurance side of the business, the company reported a combined operating ratio – a measure of claims paid out vs premiums written – of 95.8 per cent compared to 95.4 per cent in the first quarter of 2023. The company attributed higher insurance prices to the higher combined ratio.

Aviva also reported strong inflows to its asset management business, driven, in part, by workplace pension schemes.

The company reported flows of £2.7bn, up 15 per cent from the previous year. Sales of retirement products also rose a double-digit percentage, up 13 per cent.

The company reported an estimated Solvency II shareholder cover ratio of 206 per cent at the end of the quarter.

The company reiterated its long term targets to generate £2bn of operating profit by 2026 and generate additional Solvency II funds of £1.8bn by 2026.

Amanda Blanc, Group Chief Executive Officer, 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.

“We accelerated new business sales in our capital-light businesses: General Insurance premiums increased 16% to £2.7bn and our workplace pensions business generated net flows of £2bn as we won 136 new schemes. The bulk purchase annuity market also continues to be active, with Retirement sales up 13%,” Blanc added.

“Aviva is in great health. We are financially strong, we are trading well, and our investments in new products and customer service are paying off. We have clear competitive advantages – in our brand, our scale, and our diverse business – which are driving consistently strong performance, and giving us real optimism about 2024.”