Aviva saw strong demand for its private health insurance business, with sales growth of more than 40%, according to Amanda Blanc, group CEO of Aviva.
“Our private health business is experiencing strong demand from businesses and individual customers and sales grew 41% in 2023,” Blanc said.
The annual results for 2023 were released today.
Protection and health sales at Aviva were up 16% to £415m (2022: £359m), driven by strong sales in health (up 41%) and individual protection (up 13%).
Individual protection sales grew as a result of strong growth in IFA and direct channels.
But Aviva noted: “Value of new business on an adjusted Solvency II basis (VNB) was 3% lower as the impact of interest rate increases more than offset the growth in sales.”
And protection and health operating profit was 32% lower driven by adverse mortality experience and a lower benefit from assumption changes compared to the previous year.
Looking ahead, Aviva said: “We expect further strong demand in protection and health products given supportive market dynamics.”
Blanc said: “We have made significant progress in 2023.
“Sales are up, costs are down, and operating profit is 9% higher.
“Our position as the UK’s leading diversified insurer, with major businesses in Canada and Ireland, is clearly delivering.
“Today we have raised our total dividend by 8% to 33.4p and have now returned more than £9bn in capital and dividends to shareholders over the last three years.
“We have generated strong organic growth, especially in our capital-light businesses, which make up over half our portfolio.
“General insurance premiums increased by 13% on the back of strong performances in Canada and the UK.
“We are the number one provider of workplace pensions, and this business continues to thrive, with a record £6.9bn of net flows, boosted by winning 477 new schemes during the year.
“We are building a clear track record of strong and consistent performance. In each of the last three years we have grown sales, operating profit and our dividend.
“This momentum gives us increased confidence for Aviva’s future, and so today we are announcing a new £300m share buyback programme, upgrading our dividend guidance to mid-single digit cash cost growth, and upgrading our group financial targets.
“Aviva is financially strong. We are trading consistently well. Our prospects have never been better. We have leading businesses in growing markets, a fantastic brand, and we are investing substantially to make service better for our 19m customers.
“All the ingredients are in place to ensure Aviva continues to deliver an outstanding performance for our customers and our shareholders. I’m certain we will.”
Doug Brown, CEO for Aviva insurance, wealth and retirement, said: “Aviva’s insurance, wealth and retirement business performed strongly again in 2023, showing a 13% increase in ‘operating value added’, a key indicator of performance which measures the value generated by our business during the year.
“Our insurance business delivered significant sales growth across health and individual protection, as we continue to meet our customers’ need for insurance products. In group protection, overall premium income has increased owing to an excellent performance retaining and growing our existing business.
“In 2023 we have again benefited from the diverse nature of our insurance, wealth and retirement business. We continue to be well positioned to help customers and their families with a wide range of their financial needs.”