Aviva PLC (LSE:AV.) was in confident mood as it said it would deliver cost savings a year ahead of schedule and beat medium-term financial targets.
In a third-quarter trading update, the FTSE 100-listed insurer said General Insurance gross written premiums (GWP) rose 13% at constant currency to £8.0 billion, with UK&I GWP up 15% and Canadian GWP up 11% at constant currency, both driven by strong rate, new business volumes and retention.
The group undiscounted combined operating ratio (COR) was 96.3%, up from 94.2% a year ago, reflecting the impact of third-quarter wildfires and other adverse weather in Canada, offset by continued rate increases and disciplined underwriting.
Protection & Health sales were up 23% with strong growth in Individual Protection and in Health, which was supported by higher corporate new business.
Amanda Blanc, chief executive, said: “Aviva's prospects are very positive. We expect to beat our medium-term financial targets and, in line with previous guidance, grow operating profit by 5-7% this year, despite higher weather-related claims.”
Aviva said it expects to beat its own funds generation (£1.5 billion p.a. by 2024) and cash remittances (more than £5.4 billion cumulative 2022-24) targets, and to deliver its target of £750 million gross cost reduction by 2024 one year early.
It continues to anticipate further regular and sustainable returns of surplus capital.
Blanc said: “Aviva has delivered nine months of strong growth. We have clear trading momentum, driven by our uniquely diversified business, as well as our leading positions in growing markets.”