--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)

Copyright (c) 2020 Dow Jones & Company, Inc.
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