Aviva North America reports increased operating profit

Aviva has reported a preliminary International Financial Reporting Standard (IFRS) operating profit of £213 million (Cdn$330.2 million) for the North America division, compared to £149 million (Cdn$231 million) in 2008.
“In Canada, where we are the second largest general insurer, we experienced good growth in the commercial lines market, which has had the desired benefit of beginning to diversify our portfolio away from personal motor,” the company reported in a press release.
“We experienced an unusually high frequency of weather-related property losses, large losses in commercial lines due to fire claims and higher personal motor claims in Ontario, all of which impacted our COR.”
The North American division reported a general insurance combined operating ratio of 100% (99% in 2008)
Overall, the company reported an operating profit of £2 billion (Cdn$3.1 billion) on an IFRS basis in 2009, a 12% change compared to £2.3 billion (Cdn$3.6 billion) in 2008.
Aviva reported a return on equity of 16.2% for the year.
Net written premiums for general insurance and health in North America were £1.8 billion (Cdn$2.8 billion) for 2009.
General insurance and health premiums for the company were lower, at £9.2 billion or Cdn$14.2 billion — in 2008, they were £11.1 billion (Cdn$17.2 billion) — although they were only reduced by 7% when allowing for the sale of the Delta Lloyd health business at the start of the year, the company reports.
The general insurance business group expense ratio improved to 12.6% from 13.4% in 2008, reflecting increased productivity.