Saturday 20 October 2018

Profit at Aviva hits €57m in six months

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Ellie Donnelly

Ellie Donnelly

Operating profit at the Irish arm of Aviva rose 11pc to €57m in the six months to June 30.

Deducting for pension charge and other costs, operating profit was €54m.

However the group’s general insurance profit at €43m is slightly down on the same six month period last year, according to half year results from Aviva.

The group’s combined operating ratio, a key measure for profitability in general insurance, experienced a deterioration on last year, but Aviva said it remains strong at 87pc.

Aviva said its general insurance business saw net written premiums remain in line with the first half of 2017 at €255m.

"We are pricing on a realistic and sustainable basis in order to protect our customers from the volatility in the cost of premiums this market has seen in recent years," John Quinlan, Aviva Ireland CEO, said. 

"Lessons must be learnt from the recent past to create a sustainable, competitive trading landscape in which prudent, well regulated insurers can serve the best interests of their customers."

In its life insurance business, the present value of the group’s new business premiums is €494m, down from €574m in 2017, which Aviva said reflected a very competitive market. 

Profit in this business is €14m, up from €7m in the first half of 2017 due to an improving outlook for the performance of its existing book of business.

In June Aviva completed the acquisition of Friends First.

"The coming together of our two businesses will increase the scale and competitiveness of our life operations in Ireland," Mr Quinlan said.

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