Profit increases at Aviva Ireland on Friends First inclusion
Operating profit at Aviva Ireland increased 7pc to €61m in the six months to June 30.
John Quinlan, Aviva Ireland CEO, said the group’s performance was due to “material growth” in its life assurance profits.
The life insurance arm delivered a 104pc increase in operating profits to €30m, while the value of new business premiums increased to €859m, from €494m the prior year, as a result of the full inclusion of Friends First in the 2019 figures.
“Delivering sustainable profits enables us to continue to serve our Irish customers over the long term,” Mr Quinlan added.
However, the company’s general insurance business saw its operating profit fall year-on-year to €31m, from €43m in the corresponding period last year. Meanwhile, the net written premium is marginally down on the first half of 2018 at €248m, from €255m last year.
Aviva Ireland’s combined operating ratio – a key measure for profitability in general insurance – was robust at 91pc. Nonetheless, the group said it has been adversely impacted by a new industry wide levy introduced this year, and an increasingly competitive market.
Aviva’s results come just over a week after FBD Insurance saw its profits jump by over 100pc in the first half of this year.