The rise was driven by multiple factors, including an increase in claims frequency, increased reinsurance costs and inflationary pressures. Inflation started to bite in 2022 and was exacerbated by the conflict in Ukraine and knock-on effects on energy markets. However, Aviva said that “actions taken to mitigate these dynamics continue to earn through this year and next”. GrowthDespite the increase in its undiscounted COR, Aviva saw its UK gross written premium (GWP) jump from £3.94bn to £4.54bn year-on-year. This was due to growth in its personal lines arm, which jumped 20% in a year to £2.15bn, while commercial revenue increased from £2.15bn to £2.39bn between 2022 and 2023.

Source: The Times November 16, 2023 10:31 UTC