Aviva Ireland’s operating profit up by 39%
Yesterday Aviva announced the sale of its health business to leading financial services company Irish Life for an undisclosed sum. Aviva holds a 70% stake in Aviva Health, a joint venture with AIB, which owns the remaining 30%.
In today’s results statement, Aviva said the value of new business in life and pensions in Ireland jumped by 97% to €22.2m.
Aviva’s operating expenses were unchanged at €165 million while its cash remittance to its UK parent was 23 per cent lower at €73.6 million.
Aviva Ireland’s combined operating ratio – its key measure for profitability in general insurance – improved two percentage points to 94.6% despite the increase in claims costs in the market.
It said that despite floods in December, last year was overall a “benign” year, adding that the impact of weather was lower than its long term projections.
The company’s life insurance business also made “great progress” with a 27% rise in operating profits to €34m. The value of new business grew significantly last year, the company added, up 97% to €22.2m.
“As the economic recovery gathered pace in 2015, our investment products attracted a significant increase in our share of a growing savings and investment market,” Mr Hessing noted.
After a challenging first half year, the performance of its health business picked up significantly in the third quarter of the year as it reported a 43% increase in profits to €17.5m.
“Today’s results show that our strategy of disciplined underwriting and risk management is working,” the company’s CEO said.
“Our business is underpinned by the solid foundation laid over the last two years and strengthened by appointments that have enhanced our capability in key areas,” Mr Hessing added.
Aviva Ireland provides products to more than 1 million customers and employs 1,000 staff here, excluding its health business.