23 May 2024 , 14:22
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Insurance giant Aviva says there has been a 19% increase in UK general insurance premiums at the beginning of the year as it increased the cost of cover.
The firm disclosed that their UK general insurance premiums increased to £1.7 billion for the three months to March 31, and personal lines were up by 27%. Group wide, the company saw a 16% increase to £2.7billion in general insurance premiums.
The insurance sector has been increasing the cost of cover in response to the soaring cost of repairs and labour. The Association of British Insurers (ABI) recently reported a £60 or 19% increase in the average annual home insurance policy cost in the first quarter of 2024 and comprehensive motor insurance was about a third - equivalent to £157 - higher.
Assuring that the company wis focused on "pricing appropriately" in its general insurance sector throughout the rest of the year, Aviva also reported an uplift in sales at its protection and health arm, which rose by 5% to £106million due to increased demand for health coverage.
It saw solid inflows to its asset management business, with net flows up 15%, while its workplace pensions arm saw £2 billion of net flows after the group won 136 new schemes.
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Aviva Group Chief Executive Amanda Blanc said: "This is another set of excellent results, extending our track record of consistently strong trading. Aviva is in great health. We are financially strong, we are trading well, and our investments in new products and customer service are paying off."
In March, the firm revealed an increase of 9% in group operating profits reaching £1.47billion for 2023, allowing it to increase dividends and introduce a scheme to buy back shares worth £300million from investors. In the same month, Aviva announced an agreement worth £242million to purchase Probitas, marking its return to Lloyd's of London specialist insurance market after over two decades.
Probitas specialises in varied insurance coverage, ranging from professional liability to property catastrophe cover, which will enhance Aviva's global corporate and speciality business.