Aviva confirms full-year targets as premiums spark

(Sharecast News) - Aviva reiterated its full-year targets on Thursday, after the life and general insurer saw premiums jump during the third quarter. The blue chip said general insurance gross written premiums (GWP) rose 13% in constant currencies, to £8bn.

Within that, UK and Ireland GWP were up 15% while Canadian GWP rose 11%. Aviva said the increase had been driven by "strong rate, new business volumes and retention".

As a result, it now expects to beat medium-term targets as well as meet full-year guidance to grow operating profit by between 5% and 7%, despite a jump in weather-related claims from Storms Babet and Ciaran

Amanda Blanc, chief executive, said: "We have clear trading momentum, driven by our uniquely diversified business as well as our leading positions in growing markets.

"Aviva's prospects are very positive. I am extremely confident that Aviva will continue to deliver more for shareholders."

Aviva confirmed it expects to pay a total dividend of 33.4p per share this year, noting that it also anticipated further "regular and sustainable" returns of surplus capital.

As at 0900 GMT, shares in Aviva were ahead 1% at 418.5p.

Aviva's undiscounted combined operating ratio, a key measure of underwriting insurance profitability, was 96.3%, compared to 94.2% a year previously. Aviva said the increase reflected the impact of wildfires and other adverse weather in Canada.