Shares in Aviva dipped on Thursday despite the release of strong first-quarter trading numbers. At 492.9p per share, the Aviva share price was last 0.7% lower higher.
The FTSE 100 life insurer said that General Insurance gross written premiums (GWPs) rose 16% between January and March, to £2.7 billion.
In the UK, GWPs increased 19%, to £1.7 billion, with year on year growth across its personal lines coming in at 27%.
This was due to “continued strong rate discipline in the high inflationary environment, and new business growth,” the company said.
In Canada, GWPs rose to £900 million, up 11% year on year, as “rating actions on the existing book and new business growth” propelled personal line premiums 16% higher.
Strength Elsewhere, Capital Ratio Falls
Elsewhere, Aviva said that Protection and Health sales were up 5% in quarter one thanks to growth across its protection products.
Sales of its Retirement products increased 19% thanks to higher bulk purchase annuity (BPA) volumes. Retirement margins rose to 2.9% from 1.9% as the company “focused on pricing discipline,” Aviva said.
Wealth net flows improved 15% from the same 2023 period, to £2.7 billion, with Workplace and Platform sales rising 13% and 24% respectively.
The FTSE firm’s said its Solvency II capital ratio “remains strong,” though it dipped 1% year on year to 206%.
This reduction was “driven by the final dividend, share buyback and the acquisition of Optiom, partly offset by total capital generation in the quarter and completion of the sale of Singapore,” Aviva said.
Targets Unchanged
Chief executive Amanda Blanc commented that “this is another set of excellent results, extending our track record of consistently strong trading. Our diversified business model is continuing to deliver, and we are growing right across the group.”
She added that “Aviva is in great health. We are financially strong, we are trading well, and our investments in new products and customer service are paying off. We have clear competitive advantages – in our brand, our scale, and our diverse business – which are driving consistently strong performance, and giving us real optimism about 2024.”
Aviva confirmed it remains on course to generate £2 billion of operating profit by 2026. Plans to Solvency II own funds generation of £1.8 billion by then, and cash remittances above £2.8 billion between 2024 and 2026, also remained unchanged.
Royston Wild owns shares in Aviva
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