Several of the UK’s largest life and P&C insurers, as well as the Lloyd’s market, have released their financial results this week.
For Aviva, arguably the UK’s largest insurer, the results showed that its operating profit was up 9%, with “continued growth momentum across the Group”, as it said in its official press release.
“Our position as the UK’s leading diversified insurer, with major businesses in Canada and Ireland, is clearly delivering,” said Amanda Blanc, Group CEO. “We are the number one provider of workplace pensions, and this business continues to thrive, with a record £6.9bn of net flows, boosted by winning 477 new schemes during the year.”
Blanc added that Aviva’s private health business was experiencing “strong demand from businesses and individual customers and sales grew 41% in 2023”.
A key marker, however, was the bulk annuity market, which was boosted by the higher interest rate environment; Blanc said they “secured excellent volumes of £5.5bn at strong margins”.
General insurance premiums were £10.88 billion, which was an increase of 9%. For cash and liquidity, the company had cash remittances of £1.89 billion, up 3% on 2022's number.
Lloyd’s of London released its trading update for 2023 – with full results scheduled for release on March 28 – that showed its Gross Written Premium increased by 11.6% to £52.1 billion and “[reflected a] 4% organic growth and 7% price change”. This was compared to 2022’s £46.7 billion.
The marketplace saw an investment return of £5.3 billion compared to 2022’s loss of £3.1 billion, which it said reflected the higher interest rate environment and the unwind of the Mark to Market accounting treatment on fixed income portfolios.
“We continued to see sustainable, profitable growth and performance, leading to our best underwriting result in recent history and a rock-solid balance sheet that gives us and our stakeholders confidence in an uncertain environment,” said Burkhard Keese, Lloyd’s Chief Financial Officer (CFO). “We will maintain our focus on underwriting and capital discipline, and we look forward to announcing our full results and strategic progress later this month.”
Underwriting profit increased £3.3 billion to £5.9 billion.
Also this week, Aviva announced it was returning to Lloyd’s via the acquisition of Probitas.
The insurer said it had a record net investment income of $384.4 million compared to a loss of $187.3 million in 2022 in its full-year results.
“Our business has delivered excellent results, with record profits of $625.9 million underpinned by a 36% improvement in the underwriting result and a record investment income,” said Aki Hussain, Group CEO. “The Group combined ratio below 90% and ROE of 21.8% have led to very strong capital generation, which we are deploying for further growth in all parts of the business in addition to a special return to shareholders of $150 million.”
Net insurance contract written premium (net ICWP) grew by 10.7% in constant currency to $3.55 billion compared to 2022’s $3.22 billion.
Profit before tax for specialty insurer Beazley more than doubled to $1.25 billion from $584 million in 2022.
Insurance written premiums increased to $5.6 billion compared to 2022’s $5.2 billion.
Net insurance written premiums increased to $4.6 billion from $3.7 billion in 2022.
“We believe that with increased demand for insurance that the accelerating risk environment is creating, as well as an adequate rating environment, we are well positioned to continue successfully growing our business,” said Adrian Cox, Chief Executive Officer.
Cox also announced in the press release that Barbara Plucnar Jensen will become Beazley’s CFO on 1 May 2024.
“The depth and breadth of her experience, together with her leadership style, will be both a great cultural fit and an asset to Beazley,” he said.
