Aviva’s individual protection, health insurance and group protection sales fell last year on a like-for-like basis, according to its annual results.
The insurer’s individual protection sales were down by 7% to £142m from £152m as Aviva acknowledged the market had contracted over the last year.
It’s group protection sales fell by 3% to £109m from £112m.
Aviva said this was due to lower increments on existing business from reduced wage inflation, but was partly offset by growth in new scheme wins.
These protection figures are on a like-for-like basis comparing only Aviva-based sales in 2023 and 2024 exclude sales from AIG Life UK which was bought and then amalgamated into Aviva last year.
When including figures from AIG Life, overall protection sales increased by 42% to £375m from £264m.
Health insurance new business sales were also 8% lower at £138m down from £151m.
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.
However, the insurer added that health in-force premiums showed continued momentum, increasing by 10% “reflecting strong new business and disciplined re-pricing”.
Operating profits
Protection and health operating profit grew 13% to £133m from £118m, driven by higher releases from the stock of future profit as the portfolio grows the contractual service margin (CSM) and improved mortality experience, the insurer said.
And protection and health operating value added also increased by 41% to £227m from £161m 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 £1.77bn, compared to £1.47bn 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 £12.2bn, compared to £10.9bn 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 £10bn to shareholders.“
She noted the insurer now had 17 million customers in the UK – “more than any other insurer“.
And Blanc added the proposed acquisition of Direct Line for £3.7bn was on track.
‘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.”
