March 8, 2018 11:30
Aviva Canada has seen a decline of 84 % in constant currency, its net operating income in 2017, from $ 269-million pound (M£) to 46 M£. For the company, it is a year “difficult” marked by the decline of profitability in the sector of motor insurance, where claims for bodily injury have increased dramatically.
Similarly, the combined ratio of operating has also deteriorated and exceeded the mark of 100 % to 102.2 %, compared to 93 % in fiscal 2016, an increase of more than nine percentage points.
Loss of subscription
The underwriting results in Canada have also suffered, so that Aviva Canada has recorded a loss of 64 Million£ in 2017, compared with a profit of 168 Million pounds for 2016. The insurer has recorded an increase in large losses in the portfolio of insurance companies, while the claims climate-related and natural disasters have remained at high levels.
The net written premiums have increased 15 % since these results include full year contribution of RBC Insurance, was acquired in July 2016. They are passed to 3.03 billion pounds sterling (£), compared to 2,45 G£ in 2016.
Good results on the overall plan
Nevertheless, the overall results for Aviva are both positive. The group recorded an operating profit of 3.07 G£ for the year 2017, an increase of 2 % compared to the profit of 3.01 G£ recorded in the preceding year. The group’s combined ratio deteriorated slightly to reach with 96.6 %, compared to 94.2% in 2016.
Aviva explained that these results are due to a growth of its eight largest markets and a positive net impact of the changes in assumption to the Uk, despite the results “disappointing” for Canada.