October 29, 2015 by Canadian Underwriter
Aviva plc announced on Thursday that the combined operating ratio (COR) in Canada improved 2.6 percentage points to 94.2% in the nine months ending Sept. 30 from 96.8% in the nine-month period in 2014, “reflecting better overall weather experience, offset mainly by large loss experience in personal property.” Overall, the General Insurance COR improved to 94% from 95.9% in 9M 2014.
Net written premiums in Canada were 2% higher despite selected exits from unprofitable business lines, Aviva said in its interim management statement. Overall, General Insurance and health net written premiums were also up 2% to £6.11 billion in 9M 2015 from 9M 2014.
“We are maintaining the momentum of Aviva’s transformation with a further quarter of improved performance,” said Mark Wilson, Group CEO in a statement. “In life insurance, value of new business was up 25%, the eleventh consecutive quarter of growth.” Value of new business was up 25% in 9M 2015 to £823 million (9M 2014: £685 million), the statement said.
Operating capital generation in Canada remained at 0.1£ billion for 9M 2015, the same as 9M 2014. [click image below to enlarge]
Wilson said that the London, United Kingdom-based insurer’s economic capital has remained resilient at 172%, “despite significant market volatility in the third quarter, with our capital sensitivities proving accurate.” Aviva also expects a positive outcome to its Solvency II internal model application, due to be announced in December this year, he said.
Wilson also noted that “work continues to transform Aviva into a leading digital insurer,” adding that Aviva will open its second “digital garage” in Singapore in December. “Good progress has been made in hiring our global digital leadership team, bringing industry leading expertise in digital design and digital marketing. We are seeing encouraging growth in the volume of customer interactions that are completed online, and continue to develop our suite of digital propositions to be implemented across our business units.”
Aviva Canada provides insurance for homes, cars, recreational vehicles, groups and businesses.
Correction notice: The headline of the original posting of this news item read ‘Aviva’s combined operating ratio in Canada up 2.6 percentage points … ‘ when in fact the COR was down 2.6 percentage points. Canadian Underwriter apologizes for this error.