Aviva plc released its financial results for the first six months of the year on August 16. The Canadian subsidiary is making progress on both sales and claims.

In the P&C business, profit attributable to common shareholders was £240 million (£m). Aviva Canada in the first half of 2023 and £715m for all group companies.

For the first half of 2022, Aviva reported profit attributable to common shareholders of £201m ​​in Canada and £661m across group operations. This means a 19% increase in profits for the Canadian operations.

bonuses

In Canada, where Aviva is only present in property-casualty insurance, the company saw an 11% increase in direct premiums written in the first half of 2023 compared to the same period in 2022. At constant exchange rates, the increase is even 12% the same Period.

Direct premiums written in Canada totaled £2.06 billion in H1 2023 compared to £1.85 billion in H1 2022.

For commercial real estate, direct premiums written in Canada totaled £832m in the first half of 2023, up 16% compared to the £716m reported in the same period last year. At the same exchange rate, the increase for the year amounts to 17%, the company confirms in its semi-annual report.

In personal insurance, direct premiums written in Canada reached £1.22 billion in the first half of 2023, compared to £1.14 billion a year earlier. This represents an increase of 7% over one year, or 8% at the same currency value.

“Aviva’s performance and outlook only changed a few years ago. Today Aviva focuses on efficiency and speed of sales and our results show that we are achieving our goals. We plan to meet our financial targets and are making progress each quarter as promised,” said the COO. Amanda White.

combined ratio

The unadjusted combined ratio in Canada was 92.8% in the first half of 2023, compared to 91.8% in the first half of 2022. That is a difference of one percentage point.

The new IFRS 17 standards had an impact on the combined ratio in non-life insurance. Accordingly, Aviva displays the combined ratio based on the adjustment to this standard and the unadjusted combined ratio. The combined ratio based on the adjustment was 89.0% in H1 2023 compared to 90% in H1 2022.

In commercial insurance, the unadjusted combined ratio was 83.5% in the first half of 2023, compared to 88.2% in the first half of 2022. That is a difference of 4.3 percentage points.

In private customer business, the difference was the opposite at 4.3 percentage points. The unadjusted combined ratio, which was 93.7% in the first half of 2022, instead climbed to 98% in the first half of 2023.

The claims ratio for Aviva Canada was 55.9% for the first half of 2023 compared to 57.0% for the first six months of 2022.

The claims ratio of all Aviva subsidiaries was 57.8% in the first half of 2023, compared to 58.6% in the same period in 2022.

There is a two percentage point difference between Canada’s combined ratio and that of the group as a whole, which reached 94.8% in the first half of 2023. In the first six months of 2022, the difference between the Canadian subsidiary and the group as was a whole.

insurance result

Aviva Canada’s underwriting profit was £209m for the first half of 2023 compared to £175m for the same half of 2022. This is an increase of 19% yoy and even 20% yoy. same value for currency.

The company explains this result with pricing that is better adapted to the business environment, favorable claims development for claims incurred in previous years and higher returns on the claims side.