Insurance giant Aviva has seen general premiums jump by nearly a fifth as it continues to increase prices amid surging claims inflation.
The FSTE 100 listed group said UK and Ireland general insurance premiums rose 18% to £5.7 billion in the first nine months of its year so far, with personal lines up by a quarter.
Aviva said this is due to “pricing actions to offset the inflationary environment”, as well as strong levels of new business.
🎯 Another quarter of strong delivery and profitable growth.#AvivaQ32024 #FinancialUpdate
— Aviva plc (@avivaplc) November 14, 2024
It revealed that the number of motor insurance policies has risen 13% so far this year.
Insurers have been ramping up the cost of cover to counter soaring claims expenses amid high inflation over the past two years.
Aviva said the cost backdrop has begun to ease, but added: “We remain focused on continuing to price appropriately for claims inflation.”
Overall, Aviva general insurance premiums lifted 15% to £9.1 billion in the first nine months of 2024, while retirement sales jumped 67% to £4.4 billion thanks to bulk purchase annuity deals, where employers effectively transfer the risks associated with their defined benefit schemes to an insurer.
Group chief executive Amanda Blanc said: “Trading continues to be extremely positive right across the business, underlining the strength of our consistent strategy and the significant benefits of Aviva’s scale and diversification.
“Over the last four years we have increased customer numbers by 1.2 million to 19.6 million.”
She added: “We now have five million UK customers with more than one policy.”
Shares in the group were nearly 5% higher in afternoon trading on Thursday.
