What’s behind Aviva Canada’s 2023 Q1 growth
Aviva Canada grew its overall property and casualty gross written premiums (GWP) by 9% in 2023 Q1, largely on the strength of rate increases, a benign catastrophe season, and despite the fact claims frequency is increasing to pre-pandemic levels.
In personal lines, Aviva Canada took in £497 million (roughly C$831 million) GWP, a 10% increase over the same period last year. In commercial lines, Aviva Canada accounted for £352 million (about C$588.6 million) GWP in 2023 Q1, an increase of over £302 million (about C$505 million) during the same period last year.
For Aviva Canada, “commercial lines premiums were up 17% (13% at constant currency), with the business benefitting from a favourable rate environment, and strong new business activity and retention across both SME (small and medium-sized enterprises) and GCS (Globate Corporate and Specialty,” Aviva plc commented in a release.
Business research and advisory firm Gartner defines small commercial businesses as organizations with less than $50 million in annual revenue. Mid-sized enterprises are defined as organizations that make between $50 million and $999 million in annual revenue.
Related: Where Aviva Canada’s 2022 results rank them in Canada’s P&C marketplace
Referring to Aviva Canada results specifically, “personal lines premiums were 10% higher (6% at constant currency) driven by new business growth in the RBC and direct channels, and rate actions,” Aviva plc commented.
In fact, rate actions “accounted for approximately half of the growth across UK and Ireland and Canada,” Aviva plc added.
Inflation continues to be a factor in the rate increases, as the company suggests. “We remain vigilant and are continuing to price appropriately for the high inflation environment.”
Aviva Canada’s IFRS-17 undiscounted combined ratio (COR) of 92.4% was up 1.6% from its 2022 Q1 COR of 90.8%.
This “reflects a continued return to more normal levels of claim frequency partly offset by lower Cat activity in the quarter,” the company noted.
Feature image courtesy of iStock.com/MarioGuti
