Thursday 27 April 2017

Aviva Ireland profit soars to €43m, driven by new business

Aviva chief Hugh Hessing
Aviva chief Hugh Hessing
Michael Cogley

Michael Cogley

Profits at insurer Aviva Ireland jumped by 7pc in the first half of the year to €43m as major bumps in the company's life and pensions business drove profitability.

The value of new business in both areas increased by 58pc to €14.6m, up from €9.2m in the same period last year.

Aviva sold its health insurance arm to Irish Life earlier in the year in a deal believed to be worth in the region of €90m.

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 last year.

Aviva Ireland chief executive Hugh Hessing said the improvements have been driven by increased customer numbers supported by a pricing strategy.

"Performance in our personal and commercial property sector is better than expected due to benign weather in the year so far.  Claims’ costs continue to be a serious challenge in the personal motor market. We remain steadfast in our policy of defending our business against all cases of suspected fraud in the interests of our customers.

"Our results show that our strategy is working.  Our business is reaping the benefits of the actions we have taken to secure sustainable growth.  We have embarked on a number of programmes to simplify our business for our customers.  We are well placed to achieve our ambitions for growth over the coming years," Mr Hessing said.

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