# Aviva tops earning forecasts on home, motor insurance price rises
Author: Pal sinha, Barnali
Author URL: https://startupobserver.com/author/pal-sinha-barnali/
Published: 2024-08-14
Category: Headlines
Category URL: https://startupobserver.com/category/headlines/
Meta Title: Aviva Surpasses Profit Expectations with Rise in Premiums
Meta Description: British insurer Aviva surpasses profit forecasts with a 14% rise in operating profit to 875 million pounds. Confident in meeting 2026 goals.
URL: https://startupobserver.com/aviva-tops-earning-forecasts-on-home-motor-insurance-price-rises/

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By Carolyn Cohn

LONDON (Reuters) -British insurer [Aviva](https://startupobserver.com/general-health-insurance-help-aviva-to-h1-profit-beat/) beat first-half profit expectations following a rise in general [insurance](https://startupobserver.com/bsurance-extends-partnership-with-kika-leiner-to-create-omnichannel-embedded-insurance-experience-for-customers/) premiums in Britain and Ireland, and said on Wednesday it remained confident of meeting its 2026 targets.

The life and general [insurer,](https://startupobserver.com/lloyds-of-london-insurer-hiscox-profit-spikes-on-premium-rise/) whose main businesses are in Britain, Canada and Ireland, posted a 14% rise in operating profit to 875 million pounds ($1.12 billion), above analysts’ average forecast of 830 million pounds.

It saw a 15% rise in general insurance premiums overall, with an 18% rise in Britain and Ireland.

Aviva set out three-year targets last year, including to achieve annual operating profit of 2 billion pounds by 2026.

Insurers have faced criticism for raising premiums for motor and home insurance. They say this is due to inflation and supply chain issues following the COVID-19 pandemic and the war in Ukraine, with weather losses adding to pressure on home insurance prices.

The motor insurance market was “super competitive and it’s highly dynamic”, Chief Executive Amanda Blanc told a media call.

“I don’t think that the industry can be accused of profiteering.”

However, Aviva’s retirement sales fell 6% to 3 billion [pounds](https://startupobserver.com/uks-costa-coffee-to-give-workers-9-pay-rise/) due to a drop in equity release mortgages and in sales of bulk annuities, insurance for corporate pension schemes.

Aviva said it would continue to look at “targeted M&A” following recent deals such as its purchase of U.S. insurer AIG’s UK life insurance business.

Blanc told the media call that the [insurer](https://startupobserver.com/lloyds-of-london-insurer-hiscox-profit-spikes-on-premium-rise/) would launch a long-term asset fund for unlisted equity in the second half.

Aviva is one of the signatories of Britain’s “Mansion House Compact”, in which insurers and pension funds voluntarily commit to investing 5% of their defined contribution pension schemes in unlisted companies by 2030.

Aviva shares were down 0.3% at 0732 GMT, compared with a 0.5% rise in the FTSE 100.

The company said it would pay an interim dividend of 11.9 pence per share, up 7% and in line with forecasts.

($1 = 0.7796 pounds)

(Reporting by Carolyn Cohn, Editing by Lawrence White and Mark Potter)


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