Aviva achieves stable 2019 results following year of important changes

UK multinational insurer Aviva reported an increase in profits, a steady combined ratio and a slight increase in net written premiums for 2019. Its CEO said the results followed a year of important changes to Aviva’s business and leadership that helped to build operating momentum.

In the UK, the company separated management of its life and general insurance businesses, and its digital operations have been integrated back into the businesses to improve efficiency and customer delivery. Globally, it has reorganised its portfolio of major markets and strategic investments into five divisions. Aviva’s leadership team has been strengthened with a mixture of internal promotions and external hires.

Operating profits were up 6 percent to £3.2 billion (2018: £3 billion). General insurance combined operating ratio of 97.5 percent, a 0.3 percentage point increase from 2018. Net written premiums were £9.3 billion, up 2 percent from £9.1 billion in 2018.

Maurice Tulloch, chief executive officer, said: “In 2019, we set out our priorities and financial targets, strengthened our leadership team and remained focused on helping our customers prepare for a better future. We’ve made good progress, but there is much more to do.

“Our return on equity was 14.3 percent and operating profit increased 6 percent to a record £3.2 billion. Our capital position remains strong and resilient at a 206 percent Solvency cover ratio. The board has increased the full year dividend by 3 percent to 30.9 pence per share.

“Customers are choosing Aviva to help them save for their future, draw a secure income in retirement and insure what matters most to them. In 2019, we increased customer numbers by 2 percent to 33.4 million, and improved customer satisfaction levels. In general insurance, sales are up 2 percent and the outlook is positive in the majority of our markets.

“In our major life businesses, we have increased customer net inflows and grown assets by 9 percent to £417 billion. Aviva Investors secured third party net inflows of £2.3 billion on the back of strong investment performance.

“My objective is to run Aviva better. We will improve business performance and enhance returns through disciplined action on expenses and underwriting. We will focus capital and resources where we can achieve competitive advantage and strong returns and we will take robust action across the portfolio where our performance falls short or where we can see a better way of delivering value to our shareholders.”