Aviva ‘confident’ in outlook following positive Q3 trading update

Written by Michael Griffiths

09/11/2022

Aviva has reported that the value of new business (VNB) in the UK and Ireland life insurance space totalled £466m in Q3, a figure up 46% on last year.

Continued good sales growth of 3% in wealth and 4% in protection and health were offset by lower bulk purchase annuity (BPA) volumes, as the insurer said it remains selective and disciplined on price.

Aviva also reported that its general Insurance gross written premiums (GWP) were up 10% (7% at constant currency) to £7.2bn.

Following the government’s mini-Budget at the end of Q3, Aviva said that its capital and liquidity demonstrated “very strong resilience” during the period of high market volatility. It also stated that its Solvency II position remains very strong, and is estimating only a “minimal impact” to the cover ratio from the yield falls in October. 

The insurer said that its performance over the first nine months of 2022, together with a diversified product set, has further reinforced its confidence in the “prospects, financial targets and outlook” for the group.

“Trading is positive and our performance is consistently strong,” said group CEO at Aviva, Amanda Blanc. “We have had a good nine months due to our market leading positions, our customer focus and the clear benefits of Aviva’s diversified business across insurance, wealth and retirement. 

“Our customers have continued to save for their future and protect what is valuable to them. Flows in our Wealth business were encouraging and general insurance volumes continue to grow, especially in commercial lines. Profitability also remains robust across both life and general insurance. 

“Aviva’s capital and liquidity position is strong and our high quality asset portfolio has performed well during the recent period of extreme market volatility.

“We remain confident in the outlook for Aviva. We are on track to deliver our financial targets and trading momentum is building. Our dividend guidance remains unchanged and, as previously announced, we anticipate commencing additional returns of capital to shareholders with our 2022 full year results.”

Related Articles