Aviva PLC (LSE:AV.) has posted its third-quarter results and the main headline seems to be that the life insurer remains confident in achieving its previous guidance.
General insurance premiums in the first nine months of the year hit £9.1 billion, up 15% versus a year earlier, while net investment flows were up 21% to £7.7 billion, thanks to growth in workplace pensions and strong demand via the financial adviser platform business.
Retirement sales mushroomed 67% to £7.3 billion thanks to higher bulk-purchase annuity volumes of £6.1 billion compared to £3.2 billion a year ago, with "good margins and disciplined capital usage".
The combined operating ratio of 96.8% was up from 95.4% at the half year stage and 96.3% a year ago.
The Solvency II ratio was at 195%, down from 205% at the half year stage due to reflect higher pricing to offset "exceptionally high" natural catastrophe events in Canada (including a number of storm, hail, wildfire and flooding events across Ontario, Alberta and Quebec) and the solvency strain from strong bulk annuity sales in the third quarter. It was slightly below the average City analyst estimate of just under 196%
Economic impacts from falling interest rates reduced the Solvency II cover ratio by three percentage points, and the interim dividend by another four points, while the completion of the acquisition of Lloyds of London specialist Probitas accounted for another three points.
Chief executive Amanda Blanc said the third quarter performance was "very strong", that trading "continues to be extremely positive right across the business".
"We are confident about the outlook for the rest of 2024 and beyond, growing the dividend and achieving the group’s financial targets."