British insurer Aviva has reported general insurance (GI) premium growth of 9% to £2.9 billion in the first quarter of 2025, compared to £2.7 billion in the comparative prior year quarter.
Country-wise, UK&I GI premiums grew by 12% to £2 billion in Q1’25, compared to £1.8 billion in Q1’24. Personal lines contributed 8% in growth while commercial lines grew by 15%, reflecting strong new business and the acquisition of Probitas.
Canada GI premiums are up by 5% at constant currency, however, they remain flat in reported currency at £0.9 billion, with personal lines up 10%, driven by pricing actions. Commercial lines were 2% lower as the insurer maintained discipline, focusing on margins over volume.
The insurer explained that in GI, it has focused on pricing appropriately to maintain the strong rate adequacy of the book and expects a continued improvement in the COR in 2025, subject to normal weather conditions.
The group’s undiscounted combined operating ratio for Q1’25 is 96.6%, a slight increase over Q1’24 of 95.8%.
Aviva stated, “An improvement in the underlying COR as pricing actions taken continue to earn through was more than offset by elevated CAT activity, including Storm Eowyn.”
Aviva’s estimated solvency II shareholder cover ratio remains strong at 201%, compared to 203% for the full year 2024.
The firm’s retirement sales were up 4% at £1.8 billion in Q1’25, compared to £1.7 billion in Q1’24, driven by higher volumes in Individual Annuities and Equity Release. BPA volumes of £1.3 billion were broadly consistent with Q1’24.
Retirement margin improved to 3.6% due to disciplined focus on margins. Meanwhile, Protection and Health sales of £126 million were up 19% following the completion of the acquisition from AIG in April 2024, and Health in-force premiums were up 11%.
Aviva stated that its strategy to move to a more capital-light business continues to deliver, adding, “We are already a majority capital-light business with 56% of operating profit, and the acquisition of Direct Line will take us beyond 70% as synergies and profits are delivered.”
The group is confident in meeting the group targets set out during FY’23 of operating profit being £2 billion by 2026 and Solvency II OFG being £1.8 billion by 2026.
Amanda Blanc, Group Chief Executive Officer, Aviva, said, “Aviva has got off to a great start in 2025. We continue to trade strongly, serving our customers well, growing profitably right across the group, and demonstrating the resilience of our diversified business in a period of market volatility.
“Aviva has leading positions in growing markets and we have seen excellent trading in a number of areas. General insurance premiums increased by 9%, with strong performances in both personal and commercial insurance, including a travel insurance partnership with Nationwide and the benefits of acquiring Lloyd’s insurer Probitas. In our Wealth business, we secured £2.3 billion of net flows which is an encouraging 5% of opening Assets Under Management, and we increased net flows by 52% in our Platform business.
“In Retirement, our investment in the business and higher interest rates are driving growth in individual annuities where we increased sales by 32%. We also continue to see high levels of interest in health insurance and we grew sales by 19% with strong demand from consumers and employers.
“The acquisition of Direct Line is firmly on track. Direct Line shareholders voted overwhelmingly in favour of the transaction and we expect to complete the deal in the middle of the year. We continue to be very positive about the outlook for 2025. Our balance sheet is strong, we have a clear customer-focused strategy which we continue to deliver at pace and our market-leading businesses are growing well, especially in capital-light areas. We are increasingly confident about Aviva’s prospects and meeting our financial targets.”
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