Aviva has revealed a combined operating ratio (COR) in the UK of 93.9% in its financial results for 2017.
This is compared to the 106.3% posted in 2016, when the provider stated it had been impacted by the Ogden rate change, which added 12.4% to the figure.
The insurer’s UK general insurance operating profit grew by 4% to £408m (2016: £392m), which it said was due to “improved underwriting”.
This is compared to the 106.3% posted in 2016, when the provider stated it had been impacted by the Ogden rate change, which added 12.4% to the figure.
The insurer’s UK general insurance operating profit grew by 4% to £408m (2016: £392m), which it said was due to “improved underwriting”.
The provider achieved total net written premiums (NWP) in the UK of £4.08bn (2016: £3.93bn) and stated that the increase had been driven by growth in its “chosen channels and products including digital motor and commercial non-motor”.
Commercial
In UK commercial lines NWP was £1.58bn, compared to £1.52bn in 2016 and its COR came in at 96.7% (2016: 96.1%).
Within this commercial motor was down 4% to £514m, while commercial non-motor was up by 8% to £1.06bn.
NWP in UK personal lines was £2.5bn (2016: £2.41bn) and the COR was 92.0% a small improvement on the 92.5% in 2016.
Meanwhile, personal motor ticked up 6% to £1.14bn in 2017 (2016: £1.08bn) while personal non-motor rose by 2% to £1.36bn.
On a group level Aviva’s operating profit grew by 2% to £3.07bn (2016: £3.01bn), while its CORdeteriorated to 96.6% (2016: 94.2%).
General insurance NWP increased by 11% to £9.14bn in 2017, compared to £8.21bn in the preceding 12-month period.
Digital
Aviva group chief executive officer Mark Wilson said that Aviva’s digital strategy had contributed to a “particularly strong year in the UK”.
He admitted that the provider was looking at making bolt-on acquisitions in 2018 within its existing markets and areas where it wants the skillset, but added that the insurer’s cash was “not burning a hole in our pocket”.
The group CEO also stated that Brexit had had an “interesting” impact on the business, adding: “There seems to have been a flight to quality and we have benefitted from that.”
Wilson commented: “In 2017, Aviva delivered growth in profits, in dividends, in capital and in cash. Aviva grew operating earnings per share by 7% and our full year dividend by 18%, the fourth consecutive year of double-digit dividend growth.
“Our largest market, the UK, has gone from strength to strength, growing sales, market share and profit. For Aviva, the UK is a dependable and growing business.”
Acquisitions
He continued: “This year, we expect to deploy £2bn of excess cash, including £900m in debt reduction, in excess of £500m of capital returns to shareholders and about £600m for bolt-on acquisitions.
“We continue to invest in our businesses and in particular on priorities such as digital to make our products and services easier for our customers.
“Aviva is now a simpler, stronger group and we are growing. Our strategy is paying dividends.”
Commercial
In UK commercial lines NWP was £1.58bn, compared to £1.52bn in 2016 and its COR came in at 96.7% (2016: 96.1%).
Within this commercial motor was down 4% to £514m, while commercial non-motor was up by 8% to £1.06bn.
NWP in UK personal lines was £2.5bn (2016: £2.41bn) and the COR was 92.0% a small improvement on the 92.5% in 2016.
Meanwhile, personal motor ticked up 6% to £1.14bn in 2017 (2016: £1.08bn) while personal non-motor rose by 2% to £1.36bn.
On a group level Aviva’s operating profit grew by 2% to £3.07bn (2016: £3.01bn), while its CORdeteriorated to 96.6% (2016: 94.2%).
General insurance NWP increased by 11% to £9.14bn in 2017, compared to £8.21bn in the preceding 12-month period.
Digital
Aviva group chief executive officer Mark Wilson said that Aviva’s digital strategy had contributed to a “particularly strong year in the UK”.
He admitted that the provider was looking at making bolt-on acquisitions in 2018 within its existing markets and areas where it wants the skillset, but added that the insurer’s cash was “not burning a hole in our pocket”.
The group CEO also stated that Brexit had had an “interesting” impact on the business, adding: “There seems to have been a flight to quality and we have benefitted from that.”
Wilson commented: “In 2017, Aviva delivered growth in profits, in dividends, in capital and in cash. Aviva grew operating earnings per share by 7% and our full year dividend by 18%, the fourth consecutive year of double-digit dividend growth.
“Our largest market, the UK, has gone from strength to strength, growing sales, market share and profit. For Aviva, the UK is a dependable and growing business.”
Acquisitions
He continued: “This year, we expect to deploy £2bn of excess cash, including £900m in debt reduction, in excess of £500m of capital returns to shareholders and about £600m for bolt-on acquisitions.
“We continue to invest in our businesses and in particular on priorities such as digital to make our products and services easier for our customers.
“Aviva is now a simpler, stronger group and we are growing. Our strategy is paying dividends.”
