Aviva plc's Canadian business lost ground in the first six months of the year. 

Aviva Canada reported an operating profit of £204 million in the first half of 2022, compared with £229 million in the first half of 2021.

This decrease of 10.9 per cent or £25 million results “from a harsher winter season combined with an increase in driving behaviour, heightened claims severity including the impact of inflation and higher weather related CAT experience.”

“This was partially offset by favourable prior year reserve development and the impact of our continued actions around pricing, indemnity management and risk selection,” says Aviva plc. 

Aviva Canada had a combined ratio of 91.7 per cent in the first half of 2022, versus 88.8 per cent in the first half of 2021. The ratio thus deteriorated by 2.9 points. 

Underwriting result 

Aviva Canada reported an underwriting profit of £141 million in the first half of 2022, compared with £174 million in the first six months of 2021. This equals a decrease of 19 per cent or £33 million. 

Looking at the results in closer detail: 

• Personal lines posted an underwriting profit of £63 million, down 50 per cent or £63 million. 
• Commercial lines reported an underwriting profit of £78 million, up 62.5 per cent or £30 million. 

Premiums 

Aviva Canada's gross written premiums were £1.8 billion in the first half of 2022, versus £1.7 billion in the first half of 2021. This represents an increase of 11.6 per cent or £193 million. 

Looking at the results in closer detail: 

• In commercial lines, gross written premiums were £716 million in the first half of 2022, up from £614 million in the first half of 2021. This increase of 16.6 per cent or £102 million is “due to increased rate in the prevailing hard market and new business growth in mid-market and large corporate accounts.” 
• In personal lines, gross written premiums rose to £1.1 billion in the first half of 2022, from £1 billion in the first half of 2021. This increase of 8.7 per cent or £91 million is “due to rate increases against the current inflationary environment and new business growth in our direct business.” 

“We’re seeing driving patterns return to pre-pandemic levels, leading to higher claims frequency and severity. While there are inflationary headwinds for the P&C industry, I’m confident that we’re well positioned to deliver for both our customers and our shareholders,” Jason Storah, CEO of Aviva Canada, commented in conjunction with the release of the results.