Aviva plc's Canadian subsidiary advanced in 2021.

Aviva Canada reported an operating profit of £406 million, versus 287 M£ in 2020.

This result increased by 41.5 per cent or £119 million “due to actions around pricing, indemnity management, risk selection and reduced business interruption claims related to COVID-19,” the insurer said.

Combined ratio  

Aviva Canada reported a combined ratio of 90.7 per cent in 2020, compared with 94.7 per cent in 2020. The insurer attributes this 4 point improvement to “continued rate strengthening and a shift to higher value policies in commercial lines.”

This result was “partially offset by higher weather-related losses in personal lines.”

Looking at the results in closer detail:

  • In commercial lines, the combined ratio improved by 23.4 points to 86.8 per cent.
  • In personal lines, the ratio deteriorated by 5.4 points to 92.6 per cent.

Underwriting profit  

Aviva Canada reported an underwriting profit of £293 million in 2021, versus £162 million in 2020. This increase of 80.9 per cent or £131 million is “mainly driven by strong premium increases in commercial lines, benefits from lower net claims incurred as a result of COVID-19,” and was “partially offset by a slightly higher contingent profit commission provision,” the insurer notes.

Premiums  

Aviva Canada's gross written premiums totalled £3.5 billion in 2021, compared with £3.3 billion in 2020. The corresponding increase is 5.6 per cent or £184m.

Looking at the results in closer detail:

  • In commercial lines, gross written premiums reached £1.3 billion in 2021, up from £1.1 billion in 2020. This increase of 10 per cent or £115m is “driven by continued rate strengthening and a shift to higher value policies, with average premium up 9.1 per cent,” Aviva says.
  • In personal lines, gross written premiums reached £2.2 billion in 2021, compared with £2.1 billion in 2020. This represents an increase of 3.3 per cent or £69 million, “due to higher new business and retention, 
    partially offset by rate reductions in Ontario motor,” the insurer points out.

Aviva Canada CEO Jason Storah commented:This is the result of a lot of hard work to improve the performance of this business over the last three years. While inflation will continue to drive higher claims costs, putting continued pressure on rates, I’m proud of our highly engaged and committed people who are working hard every day, delivering for our customers, brokers and partners.”