Friday 20 October 2017

Aviva Ireland reports surge in profit of 39pc on back of Irish Life sale

Hugh Hessing
Hugh Hessing
Michael Cogley

Michael Cogley

Aviva Ireland increased its profits last year by 39pc up to €85m with the inclusion of its non-insurance activity.

However, profits at the firm, excluding its non-insurance activity, rose by 32pc to €91.2m, up significantly on the €69m from 2014.

Non-insurance activity at the firm relates to the impact of pension deficit funding of the Ireland group staff pension scheme.

Operating expenses at the company remained flat at €165m while its value of new business in life and pensions increased by 97pc to €22.2m.

Chief executive of Aviva Ireland, Hugh Hessing, said 2015 was the firm's best performance in five years.

"Today’s results show that our strategy of disciplined underwriting and risk management is working. Our business is underpinned by the solid foundation laid over the last two years and strenghtened by appointments that have enhanced our capability in key areas. As a result, we are now in a position to move ahead with the digital phase of our strategy which will simplify our business for our customers," Mr Hessing said.

Cash remittance at the firm dipped 23pc to €73.6m while the company's combined operating ratio increased by two percentage points to 94.6pc.

The company said that business picked up in the second half of the year with the third quarter of 2015 providing a €17.5m operating profit.

Aviva said the improved performance in the second half of the year was down to lower than expected volumes of public hospitals claims and a reduction  in people switching for cheaper cover.

The firm's chief executive went on to say that its increased profits were largely driven by commercial and personal property products.

"Despite floods  in December, overall, 2015 was a benign year and the impact of weather was lower than our long term projections. We remain committed to fighting all suspected cases of fraud, irrespective of the cost and in the interests of our customers," Mr Hessing said.

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