On May 24, Aviva plc published a summary of its insurance sales as at March 31, 2023. At the insurer's Canadian subsidiary, direct written premiums climbed 12.7 per cent in the first quarter of 2023 compared with Q1 2022. 

Gross premiums written in Canada totalled £849 million in the first quarter of 2023, compared with £753 million in Q1 2022.

For commercial lines, gross written premiums (GWP) in Canada were £352 million during the last quarter, an increase of 17 per cent from £302 million in Q1 2022. At constant currency, the year-over-year increase was 13 per cent, the company confirms in its press release. 

In Personal lines, GWP in Canada rose to £497 M in the first quarter of 2023, from £451 M in Q1 2022. This represents an increase of 10 per cent, or 6 per cent at constant exchange rates. 

“We have delivered an encouraging start to 2023 and continue to build clear trading momentum. New business volumes are good, despite persistent economic uncertainty, and we delivered another quarter of strong growth across our diversified business, says Aviva Group CEO Amanda Blanc. 

“Our general insurance business goes from strength to strength. We have grown premiums 11 per cent and maintained attractive levels of profitability, thanks to our disciplined management of inflationary pressures and our balanced mix across personal and commercial lines,” she adds. 

Combined ratio 

The unadjusted combined ratio in Canada was 92.4 per cent in the first quarter of 2023, compared with 90.8 per cent in Q1 2022. This represents a difference of 1.6 percentage points. 

Aviva attributes this decline to a continued return to normal levels of claims frequency, but this effect was offset by lower catastrophe claim activity during the quarter. 

The new IFRS 17 standard has had an impact on the combined operating ratio in General insurance. As a result, Aviva displays the combined ratio based on both a discounted basis, adjusted to the new standard, and an undiscounted basis, which is “aligning more closely to the way in which the business is managed,” the company states in its press release. 

After adjustment for IFRS 17, the combined ratio in Canada was 88.6 per cent in the first quarter of 2023, compared with 88.8 per cent in Q1 2022. This represents a difference of only 0.2 percentage points.