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Aviva Ireland’s Full Year Financial Results 2016

 

IFRS operating profit

n  Aviva Ireland operating profit up by 20% at €81.9m (FY15: €68m)   [1]

Combined operating ratio

n  Combined operating ratio improved by 3.5 percentage points to 91.1% (FY15: 94.6%)

Growth

n  Value of new business in life & pensions up 31% to €29.1m (FY15: €22.2m)

n  NWP (net written premium) up 19% to €461m (FY15: €388m)

 

 

John Quinlan, Aviva Ireland Chief Executive Officer said:

“The results Aviva reports today are due to the outstanding work of our employees, our strong partnership with our brokers, the support of our customers and our continued focus on the delivery of net profitable growth. Profit in Aviva Ireland in 2016 was up by 20% to €81.9m.

In our general insurance business, we grew our net written premium by 19%. Our combined operating ratio, our key measure for profitability in general insurance, was 91.1%, three and a half percentage points better than the same period last year. Operating profit rose by 25% to €49.9m boosted by benign weather throughout 2016. We increased our customer numbers while maintaining our strategy of providing cover at a price that is competitive and sustainable. The number of customers doing business with us digitally has doubled and we have seen a 90% increase in the number who have bought more than one of our products.

The cost of claims remains a serious challenge in the personal motor market. Aviva welcomes the report of the government’s Cost of Insurance Working Group and calls for its speedy implementation. In particular, we believe the compensation awards for minor soft tissue injuries must be reduced: whiplash accounts for 80% of all motor injury claims in Ireland. Aviva will work with the government and all stakeholders to drive down claims’ costs for the benefit of consumers.

Our life insurance business continued to build on the progress made in 2015. The value of new business, the future profit expected on business written in the year, was up 31% at €29.1m. Operating profit was up 14% to €32m[2]. Growth has been particularly strong in our range of post retirement products but volumes were up in a large number of products where we outperformed the market. We returned the benefits of digital innovations in our business processes to our customers by removing fund switching charges from all our products, and policy fees from our unit-linked pensions, savings and investment products. We launched the Aviva Investors Multi-Strategy (AIMS) Target Income Fund (Ireland), an award winning fund that aims to provide regular income regardless of the market environment.

Aviva’s landmark Mind the Gap analysis, published last September highlights a €27.8bn pension savings’ gap per annum in Ireland. Aviva notes the recent comments by the Minister for Social Protection on auto-enrolment and urges its speedy introduction to address our growing pension gap.

 

[1] On a like for like basis and excluding Aviva Health which transferred to new ownership on 1st August 2016.

[2] After a deduction of €7.3m in respect of staff pension charges and expenses.

 

We continue to invest in digital innovation, fraud capability and the simplification of our business for the benefit of our customers. As a composite insurer, we have maintained market leading customer experience scores in a challenging trading environment. Today’s results demonstrate a strong year on year improvement in our financial performance ensuring that Aviva is well placed to deliver innovative products and services that meet our customers’ needs into the future.”

 

For further information, please contact:

Cathy Herbert 0035387 2395393

 

Notes to editors

  • Aviva Ireland provides life insurance, general insurance and investment and savings products to 1million customers
  • We employ 1,150 across our three locations in Dublin, Galway and Cork.
  • We are Ireland’s largest composite insurer and part of Aviva Group, which has to 34* million customers, across 16 markets worldwide
  • By serving our customers well, we are building a business which is strong and sustainable, which our people are proud to work for, and which makes a positive contribution to society.

About Aviva

  • Aviva Ireland provides life insurance, general insurance, and investment and savings products to almost 1million customers
  • We employ 1,060 across our three locations in Dublin, Galway and Cork.
  • We are one of Ireland’s largest insurers and part of Aviva Group, which has to 33 million customers, across 16 markets in Europe, Asia and Canada
  • Aviva’s asset management business, Aviva Investors, provides asset management services to both Aviva and external clients, and currently manages over £289 billion in assets.
  • Aviva helps people save for the future and manage the risks of everyday life; across the Group we paid out £30.7 billion in benefits and claims in 2015.
  • By serving our customers well, we are building a business which is strong and sustainable, which our people are proud to work for, and which makes a positive contribution to society.
  • For further information please contact Cathy Herbert, Head of Communications on 0872395393.

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