Aviva’s UK&I GI business boosts operating profit as GWP rises

Aviva’s UK and Ireland general insurance business increased its operating profit by 25% in H1 2024 following growth in personal and commercial lines premiums.

In a trading update published today (14 August 2024), the insurer said the division secured an operating profit of £287m, up from £230m in H1 2023.

Aviva said the boost reflected improved underwriting profits, with gross written premium (GWP) rising 18% year-on-year from £3.22bn to £3.8bn.

Personal lines premiums grew 30% to £1.81bn in H1 2024, with the majority of the increase coming from actions taken in the inflationary environment and new business.

In commercial lines, meanwhile, premiums reached £1.75bn, up from £1.59bn last year – this was driven by rate, retention and new business growth in the global, corporate and specialty (GCS) arm.

Aviva also improved its undiscounted combined operating ratio (COR) in the UK and Ireland, with this decreasing from 96.3% to 95.8%.

Aviva chief executive Amanda Blanc said the UK market was “highly attractive and growing”.

Jason Storah, Aviva UK and Ireland GI chief executive, added: “This is an excellent set of results, with continued double digit growth across both personal and commercial lines, driven by disciplined underwriting, great products, launching new strategic partnerships and acquisitions.  

“We’re realising our ambition to become a leading player in personal lines and delivering on our strategy of growing our retail brands. 

“In commercial lines, we’ve extended our leadership position in the UK.

”We committed to being visible, responsive and delivering flawlessly for our brokers and customers by boosting our regional footprint with two new branches in Chelmsford and Southampton and we’re also extending our presence in Glasgow.”

Group level

At a group level, operating profit was up 14% year-on-year to £875m, while GWP increased 15% to £6.01bn.

“Sales are up. Operating profit is up. The dividend is up. Our plan to deliver more for customers and shareholders is working really well,” Blanc said.

“We remain very positive about Aviva’s prospects. Trading conditions across the UK, Ireland and Canada are excellent. And the UK market, our largest, is highly attractive and growing.

“We see many reasons to invest here, including greater economic stability and political certainty. This encouraging backdrop and Aviva’s continued strong financial performance means we are increasingly confident we can deliver even more for our customers and shareholders.”