14th Nov 2024 08:49
(Alliance News) - Aviva PLC on Thursday said trading remained strong in the third quarter leaving it confident of hitting its medium-term targets.
General insurance premiums rose 15% to GBP9.12 billion in the first nine months of 2024 from GBP8.04 billion a year prior.
This included growth of 12% to GBP3.11 billion in the third quarter from GBP2.77 billion a year prior.
UK&I GI premiums climbed 18% to GBP5.7 billion from GBP4.9 billion in the nine month period with 25% growth in personal lines and 11% growth in commercial lines, balanced between continued strong new business and pricing actions to offset the inflationary environment.
Canada GI premiums increased 11% to GBP3.4 billion from GBP3.2 billion with personal lines up 13% driven by pricing actions and strong new business growth. Commercial lines grew 8%.
Wealth net flows improves 21% to GBP7.71 billion in the first nine months of 2024 from GBP6.37 billion. Retirement sales leapt 67% to GBP7.28 billion from GBP4.36 billion and Protection & Health sales increased 22% to GBP403 million from GBP330 million.
Chief Executive Amanda Blanc said: "Our third quarter performance has been very strong. Trading continues to be extremely positive right across the business, underlining the strength of our consistent strategy and the significant benefits of Aviva's scale and diversification."
"Quarter after quarter, we are delivering consistently superior results and growing Aviva, particularly in the capital-light businesses," she added.
In response, shares in Aviva rose 3.3% to 469.90 pence in London on Thursday morning. The wider FTSE 100 was down marginally.
Aviva is aiming to increase its customer base to 21 million from 19.6 million at present, including having 5.7 million in the UK with 2 or more policies by 2026.
Reflecting the strong results, Aviva said it was confident of meeting its target for operating profit of GBP2 billion by 2026.
In General Insurance, Aviva said while the inflationary environment has improved, it remains focused on continuing to price appropriately for claims inflation.
In Health, Aviva anticipates further growth in line with an ambition for double-digit growth in in-force premiums, with some moderation in Protection growth expected.
In Wealth, the firm expects strong growth momentum to continue, remaining on track to meet a Wealth ambition of GBP280 million of operating profit in 2027.
Aviva said its capital framework is unchanged. Its guidance for mid-single digit growth in the cash cost of the dividend remains, alongside the intent to make regular and sustainable returns of capital.
"Aviva is financially strong, trading well each quarter and has significant opportunities for further growth. We are confident about the outlook for the rest of 2024 and beyond, growing the dividend and achieving the group’s financial targets," Blanc added.
By Jeremy Cutler, Alliance News reporter
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