“We remain steadfast in our policy of defending our business against all cases of suspected fraud in the interests of our customers”, Aviva Ireland chief executive Hugh Hessing said.
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In Aviva Ireland’s general insurance business it increased its written premiums by 24pc, while its combined operating ratio, which acts as its profitability indicator, stood at 90pc, three percentage points better off than the same time previous year.
“Aviva has a leading position in growing segments of the United Kingdom life market and this, together with the advantages of our scale and diverse products and distribution, sets us up well for future sustainable growth”.
In general insurance, Aviva’s operating profit dropped 17 percent to 334 million pounds after higher weather-related claims from Canada’s wildfires, floods in France and a 23 million-pound Flood Re levy.
Shares in Aviva rose 15.1p, or 3.9%, to 400.1p in early London trading. We have deliberately designed Aviva to be resilient to a low interest rate environment. We like the UK. “We are also progressing at pace with digital initiatives which will make Aviva simpler and more convenient for our customers”.
‘We remain confident in our ability to deliver on our key commitments to grow earnings, cash and dividends’.
RSA boss Stephen Hester also believes Britain’s vote in June to quit the European Union has raised challenges and uncertainties for the insurer.
However he said that so far it has been a net positive for RSA thanks to a weakening of sterling, which has boosted the value of earnings overseas. Let me be clear: “we are not”, he said.
‘Our advances are being achieved in the face of market headwinds to premiums and pricing as well as investment income’. But RSA is well placed, with a majority of earnings in foreign currencies’. Also, together with an additional transfer of £1.5bn of Friends Life assets and favourable market movements, assets under management grew 10% to £319bn, compared to £290bn for end of the financial year of 2015.
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“We are continuing to maintain a strong balance sheet, with a solvency ratio of 174% toward the upper end of our working range”.
