Aviva Reports Strong Growth in Q1

Aviva (LON: AV.) reported solid first-quarter results for 2024, showcasing robust growth across its diversified business model. 

Chief Executive Officer Amanda Blanc highlighted the company's consistent performance and strong financial health, attributing success to their strategic investments and competitive advantages.

General Insurance (GI) premiums increased 16% to £2.7 billion, with notable rises in the UK and Canada. UK GI premiums rose by 19%, driven by strong personal lines growth of 27%, and commercial lines increased by 10%. 

In Canada, GI premiums grew by 11%, with personal lines up by 16% and commercial lines by 5%. The group's combined operating ratio (COR) improved, reflecting effective rating actions.

Aviva's wealth segment also showed progress, with net flows up 15% to £2.7 billion, driven by double-digit growth in workplace pensions and platform services. The retirement sales sector experienced a 13% increase, supported by higher bulk purchase annuity volumes and improved margins.

The company's capital position remains robust, with an estimated Solvency II shareholder cover ratio of 206%.

Aviva said in its statement that it saw “strong growth across the group,” with “another quarter of consistent delivery.”

Blanc expressed optimism for 2024, emphasizing Aviva's strong market position and ongoing commitment to shareholder value, with targets set for substantial operating profit and cash remittances by 2026.

On Wednesday, Barclays raised its price target for Aviva shares to 500p from 480p, keeping an Equal Weight rating on the shares. Overall, analysts are mostly bullish on the stock, with nine out of 15 assigning it a Buy rating. Five have a Hold rating on Aviva shares, and one has a Sell rating. The average price target is 514.4p.