Aviva Canada’s year-end 2022 P&C results have vaulted the company into second place in the Canadian market, the company’s CEO announced Thursday.
“Aviva Canada delivered strong results for fiscal year 2022, achieving a combined operating ratio of 92.5% (90.7% in 2021) and premium growth of 8.6% (5.6% in 2021), which has moved us into second place in the market,” Aviva Canada’s CEO Jason Storah commented in a press release.
“Despite inflationary impacts, increased claims frequency and unique challenges with reinsurance, we’re continuing to invest significantly in Aviva’s future: improving the customer experience, targeting growth and driving efficiencies. What’s exciting about today’s results is that there’s so much more we can and will deliver on our Aviva promise — to our customers, brokers, partners and shareholders.”
Aviva plc group CEO Amanda Blanc noted premium growth in Aviva’s U.K., Ireland and Canadian general insurance businesses.
“On top of that, profitability is strong, with the combined operating ratio in the general insurance business resilient in what is a very tough market,” Blanc said of the results. “Our costs are coming down, again, set against a tough inflationary environment. We’re really pleased with the progress that we’ve made on costs.”
In Canada, Aviva’s gross written premiums in commercial and personal lines combined increased by 16% over 2021.
In commercial lines, Aviva Canada’s gross written premiums increased by 14%, which the company attributed to “increased rate in a hard market and strong new business growth.” In particular, it noted growth in Canada’s middle commercial market, which can be defined in various ways. Riskandinsurance.com defines the commercial middle market as encompassing businesses with up to $150 million in physical assets and up to $500 million in annual revenue.
In personal lines, Aviva Canada’s gross written premiums went up by 6% in constant currency, based on new business growth and “strong Ontario motor rate increases in the current year.”
Overall, Aviva Canada in 2022 reported year-end gross written premiums of £4 billion, which, although dependent on rounding, term definitions and the currency exchange rate, would place Aviva ahead of Desjardins’ 2022 reported net premiums result of Cdn$6 billion.
Desjardins Group was second place in Canada in 2021, with a 9.12% market share based on $5.98 billion net premiums written, according to the 2022 Canadian Underwriter Stats Guide, using data supplied by MSA Research.
Meanwhile, Aviva Canada ranked fourth in Canada in 2021, with a market share of 6.67%, and net premiums written of Cdn$4.4 billion, MSA Research stats show in the 2022 Canadian Underwriter Stats Guide.
Despite the premium growth in 2022, Aviva Canada’s combined ratios went up in both commercial lines (by 1.8 percentage points – from 86.8% in 2021 to 88.6% in 2022), and in personal lines (by 2.1 percentage points, from 92.6% in 2021 to 94.7% in 2022).
The company attributed the increase in COR to “a return to [a] more normal level of claims frequency” after the pandemic. The increase was offset by a favourable prior year claims development, as well as a “better weather experience” in 2022.
Feature image courtesy of iStock.com/sesame