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Insurance

Aviva holds guidance and puts costs of December's cold snap at £50mln

Aviva PLC (LSE:AV.)’s general insurance (GI) businesses in the UK, Ireland and Canada continued to trade positively over the closing months of 2022, the company said today.

In a trading update, the FTSE 100-listed insurer forecast a full-year 2022 group combined operating ratio of c.94.6%, consistent with the guidance given at its quarter-three trading update in November.

Aviva added that its dividend guidance and outlook for capital returns also remain unchanged.

The company said weather claims for the full year were broadly in line with long-term averages, and marginally above in quarter four, with claims slightly higher in the UK & Ireland (+0.4 percentage points) but lower in Canada (-0.9 percentage points).

Aviva put the cost of December’s freezing weather in the UK at around £50mln.

“We continue to price appropriately for the high inflation environment, in particular in UK Personal Lines, responding at pace to emerging data and trends,” Aviva concluded.

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