Aviva sees life new business sales rise by 28%; GI net premium gains 3%

Written by Adam Cadle

21/05/2020

Aviva’s life new business sales rose 28% to £12.3bn in Q12020 (Q12019: £9.6bn) and general insurance net written premium gained 3% to £2.4bn (Q12019: £2.3bn).

In its latest trading update, Aviva said as at 31 March 2020, its SII cover ratio is estimated at 182% (FY2019: 206%) reflecting COVID-19 related impacts.

Aviva’s investment portfolio continues to perform well. In its shareholder corporate bond portfolio, approximately 5% is invested in sectors most directly impacted by COVID-19, such as airlines, retail, leisure, and oil & gas. In 2020, Aviva’s shareholder-backed corporate bond portfolio has had no defaults. Less than £10m of bonds have had credit ratings downgraded below investment grade to the end of the first quarter, while just 3% of the portfolio has been downgraded to a lower rating “letter”.

Aviva group CEO Maurice Tulloch said: The economic outlook remains uncertain and will affect our business, however the strength of our capital and liquidity means we are well positioned to manage this crisis and continue to support our customers.”

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