Aviva Reports a 16% Increase in General Insurance Premiums

General Insurance Premiums increased by 16%
General Insurance Premiums increased by 16%
Aviva's Q1 2024 performance report highlights substantial growth in its General Insurance and Workplace Pensions divisions

Aviva reported a notable 16% increase in General Insurance premiums, having reached £2.7 billion. UK premiums surged by 19%, driven by robust rate discipline and high inflation. Commercial lines grew by 10%. Canadian operations also saw an 11% rise, with personal lines up 16%. Additionally, workplace pension net flows escalated to £2 billion, as a result of winning 136 new schemes.

The company's estimated Solvency II shareholder cover ratio remains strong at 206%, reflecting robust solvency and liquidity. 

Recent acquisitions, such as Optiom O2 Holdings in Canada and AIG’s UK protection business, have strengthened Aviva's market presence and capabilities. These moves align with Aviva's strategy to pursue capital-light growth and expand its reach in promising markets.

Operating Profit, Customer Growth and Sustainable Investment

Aviva's operating profit for the first quarter was £538m, a 10% increase from the previous year, supported by cost savings and improved underwriting results. The number of customers grew by 200,000, reaching 18.5 million globally, driven by increased digital engagement and the successful launch of new products.

Aviva has invested £1.5 billion invested in green assets during Q1 2024. This aligns with their commitment to achieve net-zero carbon emissions by 2040. The company's focus on sustainable investments not only supports environmental goals but also attracts eco-conscious customers and investors.

Amanda Blanc, Group Chief Executive Officer of Aviva

Amanda Blanc, Group Chief Executive Officer, says: “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%.

“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.” 

Key Data

  • General Insurance: Premiums increased by 16% to £2.7bn (Q1 2023: £2.4bn)
  • Protection & Health: Sales increased by 5% to £106m (Q1 2023: £102m)
  • Wealth: Net flows increased by 15% to £2.7bn (Q1 2023: £2.3bn)
  • Retirement: Sales increased by 13% to £1.7bn (Q1 2023: £1.5bn)
  • Solvency II: Shareholder cover ratio is 206% (FY 2023: 207%)

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