Combined ratio improves 5.5 points at Aviva Canada

Aviva plc released Thursday its interim financial results for the first six months of the year, reporting a 1% increase in general insurance premiums from its Canadian business and a 5.5-point improvement in its combined ratio.

“Our Canadian general insurance business grew its underwriting result to £82 million” from £30 million in the first half of 2014, Aviva stated in a press release. “Improved weather and higher prior year reserve releases were somewhat offset by an increase in personal motor claims frequency and higher large losses in personal property.”

The British pound closed at $2.06 Wednesday.

In Canadian general insurance, Aviva’s reported its combined ratio dropped 5.5 points, from 96.4% in the first half of 2014 to 91.9% in the same period in 2015.

On a constant currency basis, Aviva’s net written premiums, in Canadian general insurance, were up 1% year over year, to £1.013 billion in the first six months of 2015.

Worldwide, Aviva reported a combined ratio of 93.1% for the first six months of 2015, down 2.4 points from 95.5% in the first half of 2014.

“Benign weather and 2.1 percentage points of favourable prior year development improved the COR, while the commission and expense ratio improved from 31.0% to 30.3%,” Aviva stated of its worldwide general insurance results.

Underwriting profit in general insurance, worldwide, increased 45%, from £154 million in the first six months of 2014 to £223 million this year.

Aviva’s net written premiums, worldwide, in general insurance, were £3.5678 billion in the first six months of the year.

In Britain, Aviva’s general insurance business had a 1.1-point improvement in the combined ratio, from 94.3% in the first six months of 2014 to 93.2% in the same period of 2015.