Aviva shares increased 0.7% to 408.5p in early morning trading on Wednesday, following the insurance group’s reported 5% rise to a record £2.1 billion in general gross insurance written premiums in Q1 2022.
The firm attributed its record levels to strong growth across commercial lines in the UK and Canada.
“First quarter trading was positive, and our performance shows the clear benefit of Aviva’s business mix across insurance, wealth and retirement,” said Aviva CEO Amanda Blanc.
“We delivered healthy sales numbers across all our major business lines, with UK customer numbers up by over 100,000 in the last year to 15.4m, increasing our confidence that we can transform Aviva’s performance and grow.”
The company confirmed a 2% growth in UK and Ireland Life sales to £8.4 billion, with a rise in Annuities and Equity Release, alongside Protection and Health, slightly offset by Wealth.
Aviva commented that its total BPA sales increased 29% to £843 million in the term, with a healthy pipeline weighted towards HY2 2022.
The insurance firm added that its UK and Ireland Life value of new business rose 31% to £144 million, with a VNB margin of 1.7% which was driven by Annuities and Equity Release VNB of £31 million.
Meanwhile, Aviva further noted a GI combined ratio of 96.4%, reflecting a £70 million cost for February storms in UK GI and more general motor claims frequency.
“We remain very well positioned to benefit from the long term growth trends in our markets, and to meet our upgraded financial targets,” said Blanc.
“This is underpinned by our strong capital position which benefits from rising interest rates.”
“Our financial strength and market leadership give us confidence that we can successfully navigate the current uncertain economic conditions.”
Aviva commented that it remained on track to meet its cash remittance, own funds generation and cost reduction targets announced at its FY 2021 results presentation.
The insurance group further assured investors that it was well-placed to navigate the volatile macro-economic environment, alongside its on-schedule acquisition, announced in March this year, of Succession Wealth to close in HY2 2022.
Aviva reiterated a dividend guidance of £870 million for 2022 and £915 million for 2023 following its capital return and share consolidation, which would amount to 31p and 32.5p per share, respectively.
