UK insurance coverage big Aviva’s mixed working revenue from its Irish basic insurance coverage and life and pensions companies doubled final 12 months to €57 million.
The overall insurance coverage unit, Aviva Insurance coverage Eire, together with automotive and residential protection and led by chief govt Declan O’Rourke, noticed its working revenue enhance by 34.4 per cent to €43 million, amid decrease bills and diminished claims as a consequence of Covid-19.
Gross written premiums within the enterprise rose 1.7 per cent to €474 million, primarily on account of development in industrial enterprise strains, the corporate stated in a press release on Wednesday as the broader Aviva group reported annual outcomes.
“In 2020, we entered the monetary strains market, increasing our vary of covers to incorporate skilled indemnity and administrators and officers insurance coverage. Now we have additionally deployed vital new capability in areas the place insurance coverage capability is scarce, for instance, the charity, leisure and neighborhood sectors,” stated Mr O’Rourke.
Mr O’Rourke echoed feedback from rivals in current months in saying that whereas Private Accidents Evaluation Board (PIAB) awards have fallen on account of new judicial tips launched final April, there has additionally been a decline in acceptance charges for PIAB assessments and a discount in direct settlements.
“This can in the end result in extra claims going to courtroom, which is the costliest claims settlement channel. This can undermine the affect of reforms,” he stated.
PIAB powers
Nonetheless, Mr O’Rourke stated he welcomed the Authorities’s present plan to strengthen the powers of the PIAB to compel early engagement between events concerned in claims and cut back the extent of circumstances going to courtroom.
In the meantime, Aviva Life and Pensions Eire, led by chief govt David Elliot, swung into an working revenue of €14 million final 12 months from a €4 million loss sustained in 2020, in accordance with a separate assertion from that firm.
The advance was pushed by diminished bills, larger recurring earnings and “bettering claims expertise”, it stated.
The current worth of recent enterprise premiums grew by 10 per cent final 12 months to €1.91 billion, as a consequence of robust gross sales in safety and unit-linked investments.