Aviva looks to “moderate growth” from North American market
Insurer puts cost savings plan into action.
March 4, 2011
The insurer reported a 6% gain in general insurance net written premiums for 2010, along with a combined operating ratio of 96.8%. In announcing the year-end numbers March 3, Andrew Moss, group chief executive, noted that the company’s general insurance arm is “returning to growth.”
Overall, the insurer posted a 26% gain in net operating profits for the year.
“Over the last few years, we’ve grown the business, significantly reduced costs and strengthened the balance sheet. As a result, we’ve created a good platform for the next phase of growth,” Moss said in a statement.
Gains in Canada
On the general insurance side, Aviva’s decision to exit unprofitable business helped spur a 54% increase in operating profits–to £222 million–for its Canadian operations. That gain “reflect[s] improved underwriting performance combined with benign weather in the early part of 2010,” an Aviva bulletin states.
“Following our decision last year to exit unprofitable business we saw a moderate decline in premiums on a local currency basis and we concentrated efforts on growing profits from our book.”
The insurer also acknowledged a strengthened position in the Ontario auto market following the new regulations, and the impact of its £60 million cost savings plan on the Canadian business.
“We have taken difficult but necessary actions to improve our cost base and operational performance, including targeted cost reductions announced in November 2010,” the bulletin states.
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