Aviva reports 'very strong' performance in third quarter amid insurance demand boost

Aviva's Chief Executive Officer, Amanda Blanc, has commended the company's "very strong" performance in its third quarter. The FTSE 100 insurer noted a commendable increase in general insurance premiums by 15 per cent, amounting to £9.1bn, up from £8bn in the comparable period last year.

In the UK and Ireland markets, Aviva saw an 11 per cent boost in year-on-year premiums with advances across both personal and commercial sectors, as reported by City AM.

The firm attributed its robust performance to a combination of vigorous new business development and strategic pricing measures implemented to counterbalance the inflationary pressures.

Growth was not restricted to insurance; Aviva also reported upswings in other areas of business. Wealth net flows surged by 21 per cent, and retirement sales soared by 67 per cent, reaching an impressive £7.3bn.

Aviva also pointed out an enhanced retirement margin as evidence of its "disciplined focus on margins and capital allocation."

Looking forward, Aviva expressed confidence in achieving its ambitious goals, which include an operating profit target of £2bn by 2026 and cash remittances summing over £5.8bn for the 2024-2026 period.

Blanc emphasized the consistency in the company's strong trading results and the advantages Aviva gains from its substantial scale and diversification.

She stated: "Trading continues to be extremely positive right across the business, underlining the strength of our consistent strategy and the significant benefits of Aviva's scale and diversification," further adding, "Quarter after quarter, we are delivering consistently superior results and growing Aviva, particularly in the capital-light businesses."

Aviva's chief expressed optimism about the company's prospects, stating: "Aviva is financially strong, trading well each quarter and has significant opportunities for further growth. We are confident about the outlook for the rest of 2024 and beyond, growing the dividend and achieving the Group's financial targets."

The company's shares rose 4.8% in morning trading.