Latest news with #Probitas
Yahoo
19-05-2025
- Business
- Yahoo
Aviva posts 9% rise in general insurance premiums in Q1 2025
Aviva reported a 9% increase in general insurance premiums in the first quarter of 2025 (Q1 2025), reaching £2.9bn, up from £2.7bn in the same quarter of the previous year. Its UK and Ireland general insurance (UK&I GI) segment saw premiums increase by 12% to £2bn ($2.6bn), with an 8% rise in personal lines and 15% growth in commercial lines. According to the company, this growth reflects 'strong new business and the acquisition of Probitas'. In Canada, general insurance premiums remained flat at £900m (C$1.68bn) in reported currency basis and up 5% on constant currency basis, with personal lines posting a 10% rise due to pricing strategies. Commercial lines witnessed a 2% decline as the company maintained its focus on 'margins over volume'. The company's retirement division sales also increased by 4% to £1.8bn, driven by individual annuities and equity release. Its protection and health sales rose by 19% to £126m following the completion of an acquisition from AIG in April 2024. Health in-force premiums increased by 11%. The insurer's wealth net flows reached £2.3bn in Q1 2025 as against £2.7bn in Q1 2024, representing 5% of opening assets under management. Additionally, Aviva stated that estimated Solvency II shareholder cover ratio remains at 201%, compared with 203% in the prior year. Aviva stated that it is already a more capital-light business, which accounts for 56% of operating profit, and the acquisition of Direct Line is expected to take this figure to beyond 70% as synergies and profits are delivered. Expressing confidence in meeting its targets, the company aims to achieve an operating profit of £2bn by 2026, Solvency II OFG of £1.8bn by 2026 and cash remittances of more than £5.8bn cumulative for 2024–26. Aviva Group CEO Amanda Blanc said: 'Aviva has got off to a great start in 2025. We continue to trade strongly, serving our customers well, growing profitably right across the group, and demonstrating the resilience of our diversified business in a period of market volatility. 'We continue to be very positive about the outlook for 2025. Our balance sheet is strong, we have a clear customer-focused strategy, which we continue to deliver at pace, and our market-leading businesses are growing well, especially in capital-light areas. We are increasingly confident about Aviva's prospects and meeting our financial targets.' Blanc further added: 'The acquisition of Direct Line is firmly on track. Direct Line shareholders voted overwhelmingly in favour of the transaction and we expect to complete the deal in the middle of the year.' Recently, the UK's Competition and Markets Authority launched an investigation into Aviva's proposed £3.7bn acquisition of Direct Line, examining its potential effects on competition within the UK market. "Aviva posts 9% rise in general insurance premiums in Q1 2025 " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
The Herald Scotland
16-05-2025
- Business
- The Herald Scotland
Aviva 'firmly on track' to buy Glasgow employer Direct Line
The company also reported net flows of £2.3bn into its wealth business compared with £2.7bn in the first quarter of 2024, as the growth of its investment platform was more than offset by the outflow from a large workplace scheme which switched to another provider. The insurer issued the updated to investors after competition watchdog announced on Wednesday that it has opened an investigation into Aviva's takeover of Direct Line, which was agreed at the end of last year. The deal would combine the UK insurance operations of the two companies, covering products such as car and home insurance, and it looks set to have ramifications for the sizeable workforces both have in Scotland. Direct Line is a major employer in Glasgow and had around 1,000 members of staff in Scotland at the start of 2024, although it has cut jobs over recent months as the company has fended off predators. Under the takeover deal agreed in December, Aviva and Direct Line plan to cut between 5% and 7% of their combined employee base, which would equate to between 1,650 and 2,300 jobs, based on respective staff numbers of around 23,000 and 10,100 for Aviva and Direct Line at their last annual report dates. The cuts are designed to wring about £125 million of annual cost savings from the deal. At the time the deal was agreed in December, Aviva had around 1,000 people working at Maxim Park near Glasgow and about 1,100 staff in Perth. Read more: The phase one investigation by the Competitions and Markets Authority will give the watchdog up to 40 working days to identify whether the deal may lead to a 'realistic prospect of a substantial lessening of competition'. The deal will be cleared if the CMA, which will report back with its findings by July 10, finds no competition concerns. Derren Nathan, head of equity research at Hargreaves Lansdown, said: 'Aviva's prowess as an insurance titan shone through in the first quarter with strong signals across the board. The benefits of recent acquisitions are starting to manifest with both new business and the Probitas deal driving general insurance premiums up 12% to £2bn in the UK and Ireland. Meanwhile, last year's acquisition of assets from AIG helped spur a 19% increase in protection and health sales. And despite a major client loss, net flows into wealth were positive at 5%. 'Acquisitions remain where it's at with the £3.7bn takeover of Direct Line Group anticipated to close in the middle of this year. That is, however, subject to approval by the Competition and Markets Authority, which launched its review yesterday [Wednesday]. The CMA has 40 days to opine on the deal. 'Aviva's rock-solid balance sheet means it should be able to absorb the motor insurance specialist without compromising on its 6.8% dividend yield. Guidance for operating profit of £2bn by 2026 remains unchanged. That's not including the takeover so expect some refreshed targets should the deal complete in the summer.' Aviva declared it was confident of meeting previously announced targets, including an operating profit of £2bn by 2026, though it said it expects to 'reframe' targets following completion of the Direct Line deal. Amanda Blanc, group chief executive officer of Aviva, said: 'Aviva has got off to a great start in 2025. We continue to trade strongly, serving our customers well, growing profitably right across the group, and demonstrating the resilience of our diversified business in a period of market volatility.' Ms Blanc added: 'The acquisition of Direct Line is firmly on track. Direct Line shareholders voted overwhelmingly in favour of the transaction, and we expect to complete the deal in the middle of the year. 'We continue to be very positive about the outlook for 2025. Our balance sheet is strong, we have a clear customer-focused strategy which we continue to deliver at pace and our market-leading businesses are growing well, especially in capital-light areas. We are increasingly confident about Aviva's prospects and meeting our financial targets.' Shares in Aviva closed up 2.24%, or 12.8p, at 584.8p.
Daily Mail
15-05-2025
- Business
- Daily Mail
Aviva boosts first-quarter premiums following Probitas acquisition
Aviva enjoyed higher insurance premiums during the first quarter of 2025 following the takeover of underwriting syndicate Probitas. The FTSE 100 company revealed its general insurance premiums increased by 9 per cent to £2.9billion in the three months ending March. Premiums rose by 12 per cent to £2billion across the UK and Ireland, with personal lines up by 8 per cent and commercial lines expanding by 15 per cent. Aviva said growth was driven by new business and last year's £242million acquisition of insurer Probitas, which enabled the group to re-enter the Lloyd's of London market after two decades away. Meanwhile, the takeover of AIG's life insurance business helped boost the company's protection and health sales by 19 per cent to £126million. And Aviva's retirement sales tipped up by 4 per cent to £1.8billion, thanks partly to higher interest rates bolstering individual annuity sales by almost a third. Aviva has become a major provider of bulk purchase annuity (BPA) deals, whereby employers pass their pension obligations onto insurers. Interest rate hikes in recent years have improved the funding positions of pension schemes, thereby making such de-risking more affordable. Aviva completed £7.8billion of BPA sales in 2024, a 42 per cent year-on-year rise, and expects similar volumes this year. Amanda Blanc, chief executive of Aviva, said: 'We continue to be very positive about the outlook for 2025. 'Our balance sheet is strong, we have a clear customer-focused strategy which we continue to deliver at pace, and our market-leading businesses are growing well, especially in capital-light areas.' Aviva's result comes one day after the Competition and Markets Authority (CMA) launched a probe into the firm's planned £3.7billion acquisition of Direct Line, whose brands include Churchill and Green Flag. The CMA will investigate whether the deal will lead to a 'substantial lessening of competition within any market or markets in the United Kingdom for goods or services.' It is inviting parties to comment over the coming fortnight and will decide by 10 July whether to give the merger the green light or undertake a more full-scale inquiry. Should the takeover go ahead, the enlarged group will control about a fifth of the UK's home and insurance market. Aviva will also become the country's second-largest motor insurer behind Admiral. Blanc said Aviva anticipates completing the deal by the middle of this year. Aviva shares were 2.3 per cent up at 585.4p on late Thursday morning, taking their gains to around 22 per cent this year.
Business Recorder
15-05-2025
- Business
- Business Recorder
UK insurer Aviva reports 9% rise in first-quarter general insurance premiums
Insurer Aviva reported a 9% rise in first-quarter general insurance premiums on Thursday on strong growth in both personal and commercial lines in Britain, driven by the Probitas deal and new businesses. The life and general insurer, which operates in Britain, Ireland and Canada, said it was confident of meeting its 2026 outlook. Aviva's bid to become the largest home and motor insurer in Britain through a 3.7 billion-pound takeover of smaller rival Direct Line suffered a potential snag on Wednesday, after UK's competition watchdog launched a review of the deal. 'The acquisition of Direct Line is firmly on track… and we expect to complete the deal in the middle of the year,' CEO Amanda Blanc said. Aviva said it expects to 'reframe' the group's 2026 targets after the deal closes. The company reported 2.9 billion pounds ($3.9 billion) in general insurance premiums for the quarter ended March 31.
Reuters
15-05-2025
- Business
- Reuters
UK's Aviva reports 9% rise in first-quarter general insurance premiums
May 15 (Reuters) - Insurer Aviva's (AV.L), opens new tab general premiums rose by 9% in the first quarter, it reported on Thursday, saying its deal to buy the Probitas platform and new business had driven growth in personal and commercial lines in Britain. However, the company, which also provides wealth and retirement services, said its wealth business recorded net flows of 2.3 billion pounds ($3.06 billion), 14.8% lower than the same time a year ago. Flows at the end of March were hit, it said, as a workplace scheme switched to another provider. By the end of April, they had recovered to 4 billion pounds and the company said it was confident of meeting its 2026 outlook. It also said its deal to buy smaller rival Direct Line (DLGD.L), opens new tab would go ahead even after the UK's competition watchdog on Wednesday launched a review of the deal. "The acquisition of Direct Line is firmly on track," CEO Amanda Blanc said in a statement. "We expect to complete the deal in the middle of the year." Aviva also said it expected to reframe the group's 2026 targets after the deal closes, without giving further detail. In recent years, companies seeking to offload pension scheme risks from their balance sheets have led to a boom in British pension insurance deals. Aviva said it expects to remain active in bulk annuities - insurance for corporate defined benefit, or final salary, pension schemes - but that volumes were likely to be lower than in 2024 as it focuses on boosting margins. In March 2024, it agreed an acquisition to re-enter the historic Lloyd's insurance market by buying insurance platform Probitas. The company, which operates in Britain, Canada and Ireland, reported 2.9 billion pounds ($3.9 billion) in general insurance premiums for the quarter ended March 31. It said its bulk purchase annuity volumes were broadly consistent with the same period last year at 1.3 billion pounds. ($1 = 0.7536 pounds)
