Aviva’s protection new business sales rose by 42% year-on-year to £375m in 2024, with particular growth in group protection.
According to Aviva’s financial report, group protection new business sales rose 61% year-on-year to £180m, and individual protection new business sales increased by 28% to £195m.
The firm added that new business sales for health stood at £138m, which is a fall of 8% on the prior year. The report noted that this was due to “strong prior-year performance”, following the exit of another lender in the market.
The report noted that the acquisition of AIG’s UK protection business has “cemented” its position as leader in the market.
“We have developed strong relationships with our intermediary partners, including financial advisers, estate agents and other third parties.
“We have invested for growth in these markets, focusing on our digital proposition and bringing new health and wellbeing products to market. Pricing and underwriting discipline, as well as cost efficiency, are key drivers for profitability in this sector,” Aviva said.
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The firm said protection and health operating profit came to £133m, which is up from £118m in the prior year.
The company said this was “driven by higher releases from stock of future profit, due to growth in the contractual service margin (CSM), and improved mortality experience”.
Aviva said that, in its health business, it anticipated “further growth towards our 2026 ambition of £100m operating profit”.
The company said that, within its protection business, growth from AIG will “moderate”, with “profits from the acquisition emerging over time as the CSM is added to and then released”.
Retirement sales grow by a third
Aviva’s retirement sales, which includes equity release, came to £9.4bn, which is up by a third from the prior year.
The lender’s retirement operating product grew by 14% to £746m. This was “underpinned by portfolio growth, generating higher releases of CSM, and higher investment returns on surplus assets”.
Amanda Blanc, Aviva’s group CEO, 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.
“Our success is built on delivering excellent customer service. We now have 17 million customers in the UK – more than any other insurer – and with our diverse range of products across insurance, wealth, and retirement, we’re serving more customer needs, which is fuelling growth throughout the business.
“The proposed acquisition of Direct Line is on track and is a clear opportunity to accelerate our capital-light growth, deliver brilliant service to millions more customers, and support the wider development of the UK economy.
“Aviva is in great shape. We have clear trading momentum, which is generating strong and reliable growth. We have increased our dividend, again, and are committed to growing it further. There is so much untapped potential for Aviva to go after and I have real confidence in our ability to unlock this. So, I’m more excited about Aviva’s future than ever before, and I’m personally looking forward to delivering this next phase of progress.”
