Aviva PLC (LSE:AV.) reported continued strong trading momentum as it unveiled nine-month results which showed general insurance premium growth of 10%, and announced plans for a further share buy-back at the full-year.
The FTSE 100-listed insurer said the size of the buy-back was yet to be agreed as it also reiterated dividend guidance of around 31p per share for 2022 and 32.5p for 2023.
Amanda Blanc, group chief executive officer, said: "Trading is positive and our performance is consistently strong. We have had a good nine months due to our market leading positions, our customer focus and the clear benefits of Aviva's diversified business across insurance, wealth and retirement.”
In the nine months to 30 September 2022, general insurance gross written premiums rose 10% to £7.2bn with 7% growth in the UK to £3.9bn and 8% in Canada to £3.0bn.
The value of new business in the UK and Ireland life division rose 46% over the same period to £466mln, driven by strong growth in Annuities & Equity Release of £143m compared to £16mln last year.
Continued good sales growth of 3% in Wealth and 4% in Protection and Health were offset by lower Bulk Purchase Annuity volumes while overall UK&I Life sales of £24.9bn were down 1%.
Baseline costs fell 2% to £2bn and the group remains on track to deliver its savings target of £750mln by the end of 2024.
The general insurance operating ratio remained strong at 94.3% against 92.4% last year while the estimated solvency II shareholder cover ratio pro forma of 215% (after a planned £500mln further debt reduction and pension scheme payment) is 35 points above the top-end of the group’s target range.
Blanc said: "Aviva's capital and liquidity position is strong and our high-quality asset portfolio has performed well during the recent period of extreme market volatility.”
A continuation of the strong trends seen in quarter three across Workplace, Health and Group Protection businesses is expected to continue into the fourth quarter, Aviva said.
Blanc said: "We remain confident in the outlook for Aviva. We are on track to deliver our financial targets and trading momentum is building. Our dividend guidance remains unchanged and, as previously announced, we anticipate commencing additional returns of capital to shareholders with our 2022 full-year results."