Aviva saw its protection sales increase by 42% according to its results for 2024, released today.
Protection increased to £375 million, up from £264 million in 2023.
But health sales were 8% lower at £138 million (2023: £151 million). Aviva said that result was in line with expectations, and was due to a strong performance in the prior period following the exit of another provider in the market.
The growth in protection came off the back of the completion of the AIG Life acquisition and the addition of AIG Protection in April – which increased controllable costs with limited impact to assets.
Health in-force premiums increased by double digits reflecting strong new business and pricing actions.
Protection and health operating profit grew 13% to £133 million (2023: £118 million) driven by higher releases from the stock of future profit as the portfolio grows the contractual service margin (CSM) and improved mortality experience.
And protection and health operating value added also increased by 41% to £227 million (2023: £161 million) driven by strong growth in new business following the acquisition of AIG.
Aviva said: “In our health business we anticipate further growth towards our 2026 ambition of £100m operating profit”
But it added that growth in protection was expected to moderate, growth “with profits from the acquisition emerging over time as the CSM is added to and then released.”
Meanwhile, group operating profit was up 20% to £1,767m, compared to £1,467m in 2023.
Overall insurance, wealth and retirement (IWR) sales were up by 22% to £43.5bn, compared to £35.5bn in 2023.
General insurance premiums were up by a total of 14% to £12,204m, compared to £10,888m in 2023.
All in all, the results translated to a final dividend per share that was up by 7% to 23.8p, compared to 22.3p in 2023. And the total dividend per share was also up by 7% to 35.7p compared to 33.4p in 2023.
An excellent year
Amanda Blanc, Aviva Group CEO (pictured) said: “2024 was an excellent year, right across Aviva.
“We made clear strategic progress and delivered another set of very good numbers, with higher sales, higher operating profit and a higher dividend.
“Over the last four and a half years we have completely transformed Aviva, built a track record of consistently strong results, and returned £10 billion to shareholders.
“Our success is built on delivering excellent customer service.
“We now have 17 million customers in the UK – more than any other insurer – and with our diverse range of products across insurance, wealth, and retirement, we’re serving more customer needs, which is fuelling growth throughout the business.
Direct line
“The proposed acquisition of Direct Line is on track and is a clear opportunity to accelerate our capital-light growth, deliver brilliant service to millions more customers, and support the wider development of the UK economy.
“Aviva is in great shape.
“We have clear trading momentum which is generating strong and reliable growth.
“We have increased our dividend, again, and are committed to growing it further.
“There is so much untapped potential for Aviva to go after and I have real confidence in our ability to unlock this.
“So I’m more excited about Aviva’s future than ever before, and I’m personally looking forward to delivering this next phase of progress.”
Fantastic results
Doug Brown, CEO of insurance, wealth and retirement, said: “Our business is going from strength to strength, with a fantastic set of results for 2024.
“We continued to grow across insurance, wealth and retirement and I was delighted to see our strategy gain even more momentum over the course of the year.
“Sales have grown in our insurance business, with protection sales up 42% following the completion of the AIG Life acquisition last April.
“Health in-force premium showed double-digit growth and we anticipate further growth over the coming years.
“We are delivering consistent year-on-year growth and I am confident in our ambition to be the UK’s go-to customer brand for all their insurance, wealth and retirement needs.”
