7 March 2019 13:30
Aviva Canada saw a slight increase in its operating income in 2018, a sign that the corrective measures put in place ” bearing fruit “, says the insurer. For the year, the operating profit amounted to 82 million dollars ($M), compared to$ 78 Million in 2017.
Converted to pounds sterling, the net operating profit was maintained from one year to the other at 46 million pounds.
“Our common goal was to stabilize our business and we achieved it. […] The path is encouraging, but we still have a long journey to go, and we will have to face obstacles such as a high inflation rate of claims, a complexity constant arising from the regulation of tariffs and an increased incidence of claims of catastrophe and large claims on the canadian market, ” stresses the president and chief executive officer of Aviva Canada, Colm Holmes.
Maintaining the operating ratio combined
Its operating ratio combined in 2018 is almost unchanged compared to 2017, reaching, respectively, to 102.4 % and 102,2 %. Aviva attributed this result to large losses related to weather events, the persistent challenges in motor insurance and the costs related to the integration of property and casualty insurance business of RBC Insurance, acquired in 2017, despite an improvement in the development of the previous year.
Aviva continues to believe that it will be able to reduce its operating ratio (combined for the latter to establish between 94 and 96 % in 2020. To achieve this, the insurer has notably obtained the regulatory approval for rate increases in Ontario. The increases of 8.6 % in the portfolio Aviva and 16.8% in the portfolio of the former operations of RBC will be implemented during the first quarter of 2019.
Collaborate with the government
He also asserts that the priority of Aviva Canada is to offer insurance products that are ” sustainable and affordable “, as well as prioritizing the needs of their customers.
“We will continue to work with the government to implement the reform of market and regulatory assurance, if necessary in Canada in order to achieve our ambition of reducing the cost of the insurance to canadian consumers and to offer them the widest possible choice,” concludes Mr. Holmes.