Reinsurance News

Aviva incurs £50m hit from UK’s December freeze

25th January 2023 - Author: Matt Sheehan

London-headquartered insurer Aviva has provided an update on its general insurance lines for the fourth quarter of the year, including £50 million of losses from severe weather last month.

AvivaThe company reported that its general insurance businesses in the UK, Ireland and Canada all continued to “trade positively” over the closing months of 2022, helped by diversification across products and geographies.

The UK business in particular has seen “strong and profitable growth opportunities in attractive market segments,” Aviva said, particularly Retail and High Net Worth.

“Our customer-centric business is diversified across both products and distribution with deliberate, targeted brand segmentation,” Aviva stated.

“With its strong performance track record, it makes a key contribution to Aviva Group, providing cash generation, operating profit, access to customers, and capital diversification. This is underpinned by excellent technical foundations, including in data science and machine learning.”

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For full year 2022, the estimated group combined operating ratio was 94.6%, as adverse weather events were broadly in line with long-term averages for the year, but slightly above-average in Q4.

This was due mainly to the freezing conditions that impacted the UK through December, for which Aviva estimates a cost of around £50 million.

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