Operating profit down 10.9% for Aviva Canada

The Canadian branch ofAviva plc declined during the first six months of the year.

Aviva Canada reports operating profit of £204m in the first half of 2022, compared to £229m in the first half of 2021.

This result is down 10.9% or £25m “due to increased claims frequency resulting from a harsher winter season combined with increased driving behaviour, increased claims severity, including the impact of inflation and the increase in weather-related disasters,” says Aviva plc.

“This was partially offset by the favorable reserve development of the prior year and the impact of our continued actions in pricing, indemnity management and risk selection. »

Aviva Canada posted a combined ratio of 91.7% in the first half of 2022, compared to 88.8% in the first half of 2021. This result deteriorated by 2.9 points.

Underwriting result

Aviva Canada reported underwriting profit of £141m in the first half of 2022, compared to £174m in the first half of 2021. This is a decline of 19% or £33m.

In detail, we note that:

  • Personal lines underwriting profit was £63m, down 50% or £63m.
  • Commercial underwriting profit was £78m, up 62.5% or £30m.

Premiums

Gross written premiums (gross written premiums) of Aviva Canada were £1.8bn in the first half of 2022, compared to £1.7bn in the first half of 2021. They increased by 11.6% or £193m .

In detail, we note that:

  • In commercial lines, gross written premiums reached £716m in the first half of 2022, compared to £614m in the first half of 2021. They increased by 16.6% or £102m “due to the increase in rate under the current tough market and new business growth in medium and large enterprises”.
  • In personal lines, gross written premiums reached £1.1bn in the first half of 2022, compared to £1bn in the first half of 2021. They increased by 8.7% or £91m “due to increases in rates in the current inflationary environment and new business growth in our direct business.

“We are seeing a greater return of motorists to the roads, which has the effect of increasing the frequency and severity of automobile claims. Despite the inflationary pressures facing the property and casualty insurance industry, I am confident that we are on track to meet the needs of our customers and our shareholders,” said Jason StorahChief Executive Officer of Aviva Canada, in connection with the disclosure of these results.

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