On May 23, Aviva plc released its Q1 2024 Trading Update. For the insurer's Canadian subsidiary, the company reported a 7% increase in Gross Written Premiums (GWP) for the first quarter of 2024 compared with the same period in 2023.
General insurance GWP in Canada amounted to £908 million in the first quarter of 2024, compared with £849 million in the first quarter of 2023.
For the commercial lines segment, GWP in Canada totalled £354m in the first quarter of 2024. This is flat compared to the same period of 2023 (£352m). In constant currency values, the year-over-year increase is 5%, confirms the company in its press release.
In the personal lines general insurance segment, GWP in Canada reached £554m in the first quarter of 2024, compared with £497m a year earlier. This is an increase of 12% year-over-year, or 16% on a constant currency basis.
“We have received high single-digit rate approvals in personal auto in Ontario effective in Q2 and are on track to achieve further increases,” the company stated.
Combined ratio
The undiscounted combined ratio in Canada stood at 93.7% in the first quarter of 2024, compared with 92.4% in the same quarter of 2023, a change of 1.3 percentage points.
According to Aviva, this decline was “driven by large loss experience in commercial lines, partly offset by an improvement in personal auto theft experience with overall severity being in line with expectations.”
After adjustment for IFRS 17, the discounted combined ratio in Canada was 89.4% in the first quarter of 2024, compared with 88.6% in the same quarter of 2023, for a decline of 0.8 percentage points.
Group
For Aviva General Insurance as a whole over 12 months, GWP growth in the first quarter of 2024 was 14%, or 16% on a constant currency basis.
This growth was underpinned by a 19% increase in GWP in the UK market, including a 27% rise in personal lines.