Shares in Aviva took a slight dip despite the release of strong first-quarter trading numbers, with the share price at 492.9p per share, 0.7% higher. The FTSE 100 life insurer reported a 16% increase in General Insurance gross written premiums (GWPs) to £2.7 billion between January and March. In the UK, GWPs rose by 19% to £1.7 billion, with personal lines experiencing a year-on-year growth of 27% due to rate discipline and new business growth.
Aviva also saw an 11% increase in GWPs in Canada to £900 million, driven by rating actions on the existing book and new business growth. The company reported a 5% increase in Protection and Health sales and a 19% increase in Retirement product sales in quarter one. Retirement margins improved to 2.9% from 1.9% as a result of pricing discipline. Wealth net flows also saw an improvement of 15% from the same period in 2023, reaching £2.7 billion, with Workplace and Platform sales rising by 13% and 24%, respectively.
Despite the positive performance in various segments, Aviva’s Solvency II capital ratio fell by 1% year-on-year to 206%, attributed to factors such as the final dividend, share buyback, and the acquisition of Optiom. However, total capital generation in the quarter and completion of the sale of Singapore partly offset this reduction. CEO Amanda Blanc expressed satisfaction with the results, highlighting the company’s diversified business model and continued growth across the group. She emphasized Aviva’s financial strength, strong trading performance, and investments in new products and customer service paying off.
Aviva affirmed its commitment to achieving £2 billion of operating profit by 2026, along with targets for Solvency II own funds generation of £1.8 billion and cash remittances above £2.8 billion between 2024 and 2026. The company’s competitive advantages in brand, scale, and diverse business were identified as key drivers of consistent strong performance and optimism for the future. Despite the slight decline in share price following the positive quarterly report, Aviva’s overall outlook remains positive as it continues on track to achieve its strategic goals and deliver value to shareholders.
