Aviva’s UK health and protection business recorded a 5% increase in profits to £590m in Q3 2021, up from £562m in the same period last year.
The insurer reported that while overall protection and health sales were flat, it’s health business was up 12% nine months into the year.
It said this was driven by positive reaction to it’s guided care pathway expert select proposition, which helped deliver its highest quarterly retail volumes on record.
In October, Aviva’s health business surpassed one million insured lives for the first time.
Meanwhile, individual protection sales were up 2% nine months into the year which the insurer said had benefited from the opening up of the economy during the year, while it was also making good progress in widening distribution including in digital channels.
Group protection was down 16%, which the insurer attributed mainly to two large scheme wins in the prior period.
Value of new business grew 17% due to higher individual protection and health margins, reflecting changes in its business mix.
Aviva attributed its improved performance to focusing on a more profitable mix of business including consumer health and direct individual protection, and improved group protection claims.
Touching on its Ireland Life business, Aviva revealed sales grew 3% as of nine months into the year – driven by strong sales in unit-linked and protection business.
The insurer added that a rationalised new product offering with a focused fund range for brokers and customers had improved margins with value of new business up significantly in the period.
Amanda Blanc, group chief executive officer, reflected on “excellent and rapid strategic progress” right across Aviva.
“The completion of disposals in France and Italy general insurance since the half year are significant milestones as we deliver a radically simplified and refocused Aviva,” she said.
“We are delivering our commitment to return at least £4bn of capital to shareholders, with around £450m of the £750m share buyback already successfully completed.
“Aviva is targeting Net Zero by 2040 and we welcome the government’s plan, mandating financial institutions to publish transition plans. This will help to ensure that every firm making a Net Zero commitment – whether an insurer, a bank or an asset manager – is doing so in a robust and consistent way.
“We look forward with confidence. We expect the good trading momentum to continue in the fourth quarter, and we remain on track to meet or exceed our cash and cost saving targets.”
