Aviva targets on track as Q1 general insurance sales rise 5%

BRITISH insurer Aviva said on Wednesday (May 18) it was on track to hit financial targets as it recorded a 5 per cent increase in general insurance sales in the first quarter, helped by strong performance in commercial insurance in Britain and Canada.

General insurance gross written premiums rose to a record £2.1 billion (S$3.6 billion), while sales in the insurer’s life business rose 1 per cent to £8.7 billion.

Aviva, under pressure from activist investor Cevian Capital, in March increased its cost savings target to £750 million gross of inflation across 2018-24 and upped targets for cash remittances and own-funds generation.

The home, motor and life insurer is giving £4.75 billion back to investors after raising £7.5 billion following a string of disposals across the globe since the appointment of Amanda Blanc as chief executive in July 2020.

Aviva, which has major businesses in Britain, Canada and Ireland, also said in March it would boost its dividend this year and next, though Cevian said the insurer could give more to shareholders.

Fund management unit Aviva Investors saw external net outflows of £200 million, however, which it said reflected volatile market conditions. Assets under management totalled £253 billion at end-March, a 5 per cent drop on the quarter. REUTERS