London-headquartered insurer Aviva saw UK & Ireland Life new business sales increase 40% to £9.2 billion over the first nine months of 2020, driven by £5 billion of bulk purchase annuity sales, up from £2.1 billion in the same period last year.
In UK Savings and Retirement, net fund flows increased 20% to £6 billion, with continued positive trends in both the workplace and retail platforms.
In continental Europe and Asia Present Value of New Business Premiums (PVNBP) was down 21% to £9.3 billion, reflecting lower with-profit volumes in France and Italy as we continued to prioritise mix improvement.
The company’s COVID-19 estimate for its general insurance businesses is roughly £100 million net of reinsurance, down from the £165 million figure estimated during the first half of 2020.
This reduction from HY20 is mostly a result of lower claims frequency during the third quarter reflecting reduced economic activity.
“We are making good progress in our strategy to simplify Aviva’s portfolio and have recently announced the sale of Aviva Singapore and Aviva Vita in Italy for £2 billion,” said Chief Executive Officer Amanda Blanc.
“We are announcing today a new sustainable and resilient dividend policy, based on our core markets of the UK, Ireland and Canada. As we simplify Aviva’s portfolio, we will deliver further value to shareholders by returning excess capital above 180% solvency cover ratio, once our debt leverage target ratio has been reached.
“Our trading performance is robust and our financial position is strong with a capital surplus of £11.8 billion. The first nine months have demonstrated Aviva’s ability to grow in core markets where we have attractive, long-term growth prospects.
“The response of our people to the Covid crisis has been nothing less than phenomenal and I would like to thank them for all they have done for our customers this year. We continue to work at pace to deliver our strategy, support our customers, and unlock value for Aviva shareholders.”
