Amanda Blanc outlines impact of recent mergers on Aviva’s growth
Amanda Blanc outlines impact of recent mergers on Aviva’s growth | Insurance Business Canada
Insurance News
Amanda Blanc outlines impact of recent mergers on Aviva’s growth
Chief exec expresses optimism about the insurer’s future
Insurance News
By
Jonalyn Cueto
During a conference call, Aviva’s CEO Amanda Blanc (pictured) highlighted the group’s pursuit of a growth acceleration strategy in its capital light businesses. Aviva, a major player in the insurance industry, has reported robust growth in its commercial and life segments for the first quarter.
Blanc expressed satisfaction with the group’s performance, noting double-digit growth in retirement alongside significant advancements in its commercial and life sectors. She emphasized the pivotal role played by recent mergers and acquisitions, highlighting the recent completion of two significant deals: the Optiom managing general agent acquisition in Canada and the acquisition of AIG Life in the United Kingdom.
The acquisition of AIG Life, in particular, has reinforced Aviva’s dominant position in the market, according to Blanc. She noted that the move not only solidifies Aviva’s market standing but also delivers expense synergies, contributing to the company’s overall growth trajectory.
Blanc also shed light on Aviva’s recent acquisition of Probitas, a Lloyd’s platform, which is poised to unlock growth opportunities in the global corporate and specialty business. According to AM Best, this acquisition, expected to be finalized in mid-2024, signifies Aviva’s strategic expansion into key markets, further enhancing its underwriting capabilities.
In addition to its acquisitions, Aviva announced the completion of the divestiture of its stake in Singapore Life Holdings Pte Ltd., a move Blanc described as further simplifying the group’s footprint.
Increases in premiums
Aviva’s financial performance for the first quarter also showcased positive indicators, with general insurance gross written premiums increasing to £2.71 billion from £2.38 billion the previous year. Despite a slight increase in the combined operating ratio, Blanc and chief financial officer Charlotte Jones expressed optimism about the future, citing double-digit growth in both the UK and Canada within the general insurance segment.
Jones elaborated on the specifics, highlighting a 19% rise in general insurance premiums in the UK, driven by both rate actions and volume growth, while commercial lines premiums increased by 10% due to strong mid-market retention and new business opportunities in the global corporate and specialty sector.
Similarly, in Canada, general insurance premiums rose by 11%, with personal lines seeing a 16% increase attributed to new business ventures and rate adjustments in response to an inflationary environment.
Despite challenges such as commercial lines losses and auto claims severity increases, Aviva remains confident in its ability to navigate these obstacles effectively while maintaining its commitment to delivering superior financial strength and service to its customers.
Aviva Insurance Ltd. currently holds an AM Best Financial Strength Rating of A+ (Superior).
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