Aviva grows UK GWP by 4% in Q1

The breakdown showed an 11% increase in UK commercial lines business in Q1 with GWP reaching £611m.

The insurer noted this was due to continued rate momentum and new business growth and retention. The provider achieved 12% growth in SME and 9% in global corporate and specialty lines.

However, GWP in personal lines fell by 2% year-on-year to £627m from £643m in Q1 2020.

This was despite the Financial Conduct Authority’s ban on dual pricing leading to increased policy retention across home and motor.

The drop was due to a soft rating environment and intermediated premiums falling as it continued to reshape the portfolio towards higher margin lines, Aviva stated. The business started trimming its personal lines products in 2019.

The COR slipped to 99.4% from 92.1% in the same quarter of 2021.

The insurer detailed that it was hit by £70m of claims from the storms in February which added 5.2% compared to the prior year and that “a return to more normal claims frequency also adversely impacted the COR”.

Storm Dudley hit the UK on 16 February with storm Eunice two days later, followed by storm Franklin on 20 February. The Association of British Insurers calculated last month that the sector faces a £500m bill from the three weather events.

Factoring in GI business in Ireland and Canada then GWP was up 5% at £2.1bn which Aviva highlighted was a record for the first quarter with a COR of 96.4% (Q1 2020: 90.6%).

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Adam Winslow, CEO for UK & Ireland General Insurance at Aviva said: “It’s pleasing to see a strong start to 2022 in our UK general insurance business, with gross written premiums increasing 4% year on year to £1,238m, continuing the record GI growth reported in our full year 2021 results. We have maintained our strong sales momentum and brought in additional underwriting expertise, launched new solutions and embedded a regional approach to supporting brokers.

“Although the February storms had an impact, we were there to help 20,000 customers as they dealt with the aftermath. These storms, together with supply chain disruption and an increase in claims resulting from the easing of Covid restrictions, have impacted the UK GI COR. However, we have continued our focus on driving profitable growth in our business and remain confident in our progress and pace.”

Adding: “Commercial Lines has delivered strong new business growth, benefiting from continued rate momentum, and improved retention of our customer base. In Personal Lines we have broadened the range of products we offer our customers with the launch of Quotemehappy Essentials, which provides a new lower tier car insurance on price comparison websites.

“We are accelerating our digital operations, in line with the preference of customers and intermediaries, and now see 93% of all Personal Lines sales being transacted digitally, and where customers report their claim online, 94% also book their own repairs. In addition, 90% of our regional and Fast Trade renewals, including speciality lines, are digitally supported.”

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