Aviva grows GWP but COR worsens

According to the insurer, the COR for the first nine months of the year worsened due to increased claims frequency which was partly offset by improved performance in commercial lines and lower weather costs.

UK GWP increased by 7% compared to the same period of 2021 to £3.94bn. 

Commercial lines was up 13% year-on-year to £2.15bn which the insurer said was driven by the continued favourable rate environment as well as new business and retention, including 13% growth in SME and 14% in global corporate & specialty.

Aviva’s personal lines premiums were flat at £1.79bn with the provider highlighting it had focused on maintaining pricing discipline in the current environment.

In motor, the insurer has increased new business rates on average by 15% and by 8% in home in the year to date to mitigate claims inflation.

Adam Winslow, UK & Ireland general insurance CEO at Aviva, said: “We are continuing our investment in the regional broker channel, increasing underwriting capacity in our mid-market trading business and improving our digital service. Within SME, these initiatives are contributing to 11% growth in mid-market and 19% in digital trading. Through prioritising digitisation and automation, we are seeing 83% of our intermediaries transacting with us digitally, rising to 100% for our micro direct customers.”

Acquisitions

Winslow claimed the provider’s personal lines had stayed “resilient” in tough conditions highlighting it had been “vigilant” in its pricing discipline and “robust” in its management of inflation.

“We have expanded into profitable markets, confirming plans to acquire the specialist managing agent Azur Underwriting’s high net worth personal lines business,” he continued.

“This complements our now completed Axa XL deal and gives us a leading position in the HNW market. We have also confirmed a multi-year UK strategic partnership with US insurtech Lemonade to help reach the under-served renters’ market in the UK, and our Aviva Zero motor insurance, which offers carbon offsetting, continues to deliver strong growth through price comparison websites.”

Lemonade launched in the UK on 3October this year, with a contents insurance offering in partnership with Aviva.

Aviva’s carbon offsetting plan is in line with Aviva group CEO Amanda Blanc calling on the UK government and financial institutions to act on being climate-ready.

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