Thursday, July 18, 2024
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Aivva announces excellent first quarter results


Authored by Aviva

  • Excellent first quarter results
  • Strong growth across the Group. Another quarter of consistent delivery
  • Capital position strong and resilient

General Insurance

Protection & Health

Wealth

 Retirement

Solvency II

£2.7bn

£106m

£2.7bn

£1.7bn

206%

Premiums +16%

Sales +5%

Net flows +15%

Sales +13%

Cover ratio

Q123: £2.4bn

Q123: £102m

Q123: £2.3bn

Q123: £1.5bn

FY23: 207%

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%.

“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.”

Continued capital-light growth momentum

  • General Insurance premiums up 16% to £2.7bn.
  • UK GI premiums up 19% to £1.7bn with 27% growth in personal lines reflecting continued strong rate discipline in the high inflationary environment, and new business growth. Commercial lines grew 10%.
  • Canada GI premiums up 11% to £0.9bn with personal lines up 16% driven by rating actions on the existing book and new business growth. Commercial lines grew 5%.
  • Group undiscounted combined operating ratio (COR) of 95.8% (Q123: 95.4%). An improvement in the UK COR as the rating actions taken earn through was offset by an increased Canadian COR. Discounted COR of 92.0%.
  • Protection & Health sales were up 5%, driven by continued growth in Protection.
  • Wealth net flows of £2.7bn were up 15% on the prior year with double-digit growth in Workplace, up 13%, and in Platform up 24%.
  • Retirement sales were up 13% driven by higher BPA volumes. Retirement margin improved to 2.9% (Q123: 1.9%) as we focused on pricing discipline.

Strong solvency and liquidity positions

  • Estimated Solvency II shareholder cover ratio remains strong at 206%.
  • The reduction in the quarter of 1pp was primarily driven by the final dividend, share buyback and the acquisition of Optiom, partly offset by total capital generation in the quarter and completion of the sale of Singapore.
  • Solvency II debt leverage ratio of 30.9% (FY23: 30.7%) or 28.7% when allowing for the Tier 2 notes redemption announced on 16 May.
  • Centre liquidity (Apr 24) of £2.1bn (Feb 24: £1.9bn), primarily reflecting net proceeds from acquisitions and disposals offset by the share buyback.
  • £300m share buyback is progressing well.
  • The 2023 final dividend of 22.3p per share was paid to shareholders today.

To view the full Q1 results from Aviva CLICK HERE



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