Aviva Earnings: Delivering Relatively Well in Insurance, but a Difficult Market in Wealth

Aviva has delivered mixed results for the third quarter of 2023 with good earnings in insurance, but weaker in wealth. The company has grown general insurance premiums by 11% year to date with slightly stronger growth in personal lines, particularly in the U.K., where Aviva has prioritized pricing over volume and benefited from higher sales in new products such as Aviva Zero and Aviva High Net Worth. The discounted combined ratio improved marginally over the first 9 months by 60 basis points, but that improvement is unfortunately due to discount rates as the impact of wildfires and adverse weather has hit claims. This has particularly been the case in Alberta, Nova Scotia, British Columbia, and Northwest Territories.