Aviva’s Share Price Rose 1.75% on an Upbeat Q3 Trading Update

The Aviva plc (LON: AV) share price rose 1.75% after its Q3 trading update was released. The company reported that its general insurance gross written premiums (GWP) increased by 13% at constant currency to reach £8.0 billion. The UK and Ireland (UK&I) saw a 15% increase in GWP, while Canadian GWP also grew by 11% at constant currency.

The Group's undiscounted combined operating ratio (COR) for the period stood at 96.3%, compared to 94.2% in the same period of the previous year. This change was influenced by adverse weather conditions, including wildfires in Q3, primarily affecting Canada. 

Protection and health sales surged by 23%, with substantial growth observed in the Individual Protection and Health segments. The corporate sector also contributed to this growth through increased new business.

Wealth net flows totalled £6.4 billion, equivalent to 6% of opening assets under management. However, this figure was 9% lower compared to the same period in 9M22, primarily due to market volatility impacting the Platform.

Aviva remains on track to surpass its medium-term targets. It expects to exceed its funds generation goal of £1.5 billion per annum by 2024 and cash remittances of over £5.4 billion cumulatively from 2022 to 2024.

Despite weather-related claims from events such as Storms Babet and Ciarán impacting the UK since the end of Q3, the company's 2023 guidance remains unchanged, with expectations of 5-7% growth in operating profit from £1,350 million in 2022. 

Aviva is committed to delivering for its shareholders, with plans to pay a total dividend of approximately £915 million or around 33.4 pence for 2023, followed by low-to-mid single-digit growth in the cash cost of dividends in subsequent periods.

Aviva’s Group CEO Amanda Blanc said: “Aviva has delivered nine months of strong growth. We have clear trading momentum, driven by our uniquely diversified business, as well as our leading positions in growing markets. We have continued to expand our capital-light businesses, which now make up over half of our portfolio. We see significant opportunities to generate further higher returns and capital-light growth in the future as we prioritise these segments. General Insurance premiums grew 13%, reflecting the strength of our operations in the UK, Canada, and Ireland across both commercial and personal lines.”

Aviva share price. 

The Aviva share price rose 1.75% to trade at 420.95p from Wednesday’s closing price of 413.70p.