Aviva motoring

17th May 2011 07:15

Insurance giant Aviva highlighted the performance of its UK general insurance sales, which topped the billion pounds mark, as it made a solid start to the year. Net written premiums in the first quarter of 2011 were up 9% on the corresponding quarter and up 14% on the preceding quarter at £2.69bn.UK general insurance sales were up 20% to just over £1bn from £0.9bn in the first quarter of last year, with a significant increase in the UK motor book. The company has added 580,000 UK motorists to its book since the start of 2010.The group combined operation ratio, a measure of how well its underwriting operations are performing, improved to 97% from 102% a year earlier. On the life assurance side, the group saw long term savings sales of £8.8bn, on a par with performance in the preceding quarter but down 14% on a year earlier, as the group abandoned less profitable parts of the market. The group life new business margin improved to 2.5% from 2.3%. The group reduced its stake in Dutch and Belgian insurer Delta Lloyd during the period to less than 50%, which means it is no longer a subsidiary; with Delta Lloyd excluded, the new business margin rate rose to 2.9% from 2.9%. The new business internal rate of return excluding Delta Lloyd increased to 13.7% from 12.3% in the first quarter of last year.The group said it is on track to meet its mid-term financial targets. "By making the most of our powerful combination of life and general insurance and by ensuring we put our customers at the heart of our business, I'm confident that Aviva will continue to thrive in 2011," said group chief executive Andrew Moss. In a separate announcement, Aviva said it has been appointed as a preferred strategic partner to banking giant HSBC in the UK and Europe. The HSBC and Aviva five-year exclusive general insurance distribution deal signed in 2007 for home, travel and creditor business in the UK has also been extended to 2016.---jh