Aviva Ireland operating profit nearly doubles to €45m in first half of year
Published 06/08/2015 | 07:27
Operating profit at Aviva Ireland nearly doubled from €25m to €45m across the firm's three businesses in the first six months of the year.
Profit in the group’s general insurance business more than doubled to €23m compared to €11m in the half year period in 2014.
Written premiums and policy count increased by 8pc, the second consecutive year of growth. Combined operating ratio, a key measure of profitability in insurance, was 93.5pc which was 3.2pc better than the year before. The ratio represents claims and operating expenses as a percentage of premium income. A ratio below 100pc indicates that the company is making underwriting profit while a ratio above 100pc means that it is paying out more money in claims that it is receiving from premiums.
The group’s life insurance business saw operating profit rise to €19.5m from €9m. This growth was aided by one-off benefits associated with the branching of our life business from the UK at the end of last year.
However profits halved from €5.1m to €2.6m at the firm’s health business. Aviva said that it was impacted by an increase in claims costs and in claims frequency. The firm added that average premiums have fallen as customers opt for lower priced plans at renewal.
A statement from Aviva said the company is making “good progress”.
“We have more to do to simplify our customers’ journey and to give them value for money and peace of mind. Our strategy to do this is clear and we are confident we are in a good position to take full advantage of the strong recovery in the Irish economy.”