TOP NEWS: Simplified Aviva performance driven by Savings and Insurance

(Alliance News) - Aviva PLC on Thursday said it has seen a "strong" performance so far in 2021, ...

Alliance News 11 November, 2021 | 9:13AM
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(Alliance News) - Aviva PLC on Thursday said it has seen a "strong" performance so far in 2021, with its Savings & Retirement unit booking record inflows and its General Insurance unit recorded "excellent" premium growth.

In the third quarter of 2021, the blue-chip insurer's Life sales and value of new business increased by 13% to GBP11.94 billion from GBP10.58 billion. UK & Ireland Life sales jumped 23% to GBP9.08 billion - with Savings & Retirement sales up 29%, Annuities & Equity Release up 22%, and Protection & Health up 5%, which helped offset a 3% slip in Ireland Life sales.

Aviva booked GBP2.12 billion net inflows into its Savings & Retirement business, up 15% from GBP1.84 billion a year before.

General Insurance gross written premiums rose 2.8% in the third quarter to GBP2.55 billion from GBP2.48 billion. Aviva's Personal lines saw gross premiums slip 2%, with a 4% drop in the UK, but this was offset by Commercial lines rising 13%, aided by 16% growth in the UK.

"Aviva has delivered strong performance in the first nine months," Chief Executive Amanda Blanc said.

She continued: "Record inflows in Savings & Retirement and excellent growth in General Insurance support our confidence in Aviva's growth potential. Savings & Retirement net flows were up 21% year-to-date, continuing the strong first half performance. Bulk annuity volumes accelerated sharply in the third quarter. General Insurance premiums grew 5% year-to-date reflecting solid customer retention and new business wins, particularly in commercial lines."

Aviva's Solvency II shareholder cover ratio ended the third quarter at 215%, up from 203% at the end of the first half.

In the first nine months of 2021, Life sales and value of new business increased 11% to GBP34.67 billion from GBP31.12 billion. General Insurance gross written premiums increased 5.0% to GBP7.92 billion from GBP7.54 billion.

"We continue to make excellent and rapid strategic progress, right across Aviva. The completion of disposals in France and Italy GI since the half year are significant milestones as we deliver a radically simplified and refocused Aviva. We are delivering our commitment to return at least GBP4 billion of capital to shareholders, with about GBP450 million of the GBP750 million share buyback already successfully completed," Blanc added.

Aviva said it expects "strong growth" in cash remittances in 2021 compared to the GBP1.4 billion in 2020. The insurer said it is on track to hit its target of GBP5 billion cumulative business unit cash remittances from 2021 to 2023.

Shares in Aviva were 0.8% higher in London on Thursday morning at 408.70 pence each.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Aviva PLC 424.10 GBX -1.83

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