Aviva's Nine-Month Trading Resilient; Declares 1st Half Dividend -- Update
November 26 2020 - 03:45AM
Dow Jones News
--Aviva's nine-month performance was resilient, with Covid
19-related claims decreasing when compared with the first half of
the year
--The FTSE 100-listed insurer benefited from strong performance
in its core markets while seeing declines in the manage-for-value
portfolio
--Aviva has declared a 7.0 pence a share interim dividend and it
expects to declare a dividend for the full year
By Sabela Ojea
Aviva PLC said Thursday that trading for the first nine months
of the year has been resilient and that it is declaring a dividend
for the first half.
The FTSE 100-listed insurer said performance was driven by its
core markets, partially offset by declines in the manage-for-value
portfolio as margin was prioritized over volume. The company said
that it is exploring options across the manage-for-value
portfolios, including in France, Poland, the remainder of Italy and
its joint ventures.
U.K. and Ireland Life new business sales rose 40% to 9.2 million
pounds ($12.3 million) for the nine-month period, with value of new
business rising 5% to GBP203 million.
In Continental Europe and Asia, present value of new business
premiums fell 21% to GBP9.3 billion, while net written premiums
rose 4% to GBP1.27 billion, mainly due to rate increases in France.
Value of new business fell to GBP411 million from GBP510 million in
the year-earlier period due to lower volumes.
Regarding its Covid 19-related claims, Aviva said at Sept. 30
its estimate of these claims is around GBP100 million net of
reinsurance, down from GBP165 million in the first half of the
year.
"This reduction from the first half is mostly a result of lower
claims frequency during the third quarter reflecting reduced
economic activity," it noted, adding that, even though the effects
from fourth-quarter lockdowns remain uncertain, it doesn't expect
to see a significant increase in net business interruption
claims.
At Sept. 30, the company's Solvency II ratio--which represents
capital strength--is expected at around 195%, from 194% for the
first half of the year, with a capital surplus of GBP11.8
billion.
The board has declared an interim dividend for the first half of
the year of 7 pence a share, while it expects to declare a 21.0
pence a share dividend for the year.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
November 26, 2020 03:30 ET (08:30 GMT)
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