Aviva has reported General Insurance gross written premiums (GWP) are up 8% to £9,749 million in its full-year financial results for 2022, compared to the prior year’s £8,807 million.
The firm notes UK & Ireland GWP are up 7% to £5,740 million, compared to 2021’s £5,352 million, with Canada GWP up 16% to £4,009 million, from 2021’s £3,455 million.
UK general insurance witnessed a combined ratio of 96.1%, compared to last years 94.3%, whereas Canada achieved a combined ratio of 92.5%, compared to 2021’s 90.7%.
Additionally, Aviva noted that UK & Ireland Life operating profit increased by 34% to £1,908 million, from £1,428 million from the prior year. Aviva stated that the increase was driven by a number of factors, including strong margins in retirement, a strong performance in Ireland Life, the impact of market movements on policyholder tax in Heritage, and a higher contribution from management actions and other, partly offset by Wealth where revenue was adversely impacted by market volatility.
At the same time, Canada’s operating profit increased 6% to £433 million, from 2021’s £406 million.
Aviva also reported a total operating profit of £2,213 million for the full-year, representing a 35% increase from 2021’s £1,634 million.
Amanda Blanc, Group Chief Executive Officer, commented: “We are making excellent progress at Aviva. Operating profits and dividends are growing and we have strong trading momentum despite significant market volatility. We have radically simplified Aviva, we are financially strong and we are utterly focused on transforming and growing the business.
“Our core businesses in the UK, Ireland and Canada grew in 2022, and contributed to a very strong, all round performance. Life insurance value of new business is up 15%, general insurance sales are up 8% and overall operating profit is up 35%. We are investing to make it easier for customers to do business with Aviva and customer numbers in the UK have grown to 15.5m.”
She continues: “Cash remittances are up strongly, our capital position is robust, and we are today declaring a final dividend of 20.7 pence, meaning a total ordinary dividend of 31.0 pence for 2022. We are committed to delivering an attractive and sustainable dividend, and have upgraded our dividend guidance to low-to-mid single digit growth in the cash cost of the dividend.
“We are confident in the future capital generation of our business, and so we are also announcing today an additional return of capital to shareholders, via the launch of a £300m share buyback, in line with our preference to return surplus capital regularly and sustainably. This takes the total capital return to over £5bn since 2021.
“The diversified model we have built at Aviva has proved its worth, providing clear benefits for customers and shareholders and driving our great results last year. Whilst I am pleased with what’s been accomplished over the past twelve months, I am clear there is significantly more value which Aviva can and will deliver in 2023 and beyond.”