Aviva hits record £3.2bn profit despite coronavirus claims

A London insurance company has announced that it has achieved a record £3.2bn operating profit despite thousands of pounds of COVID-19 related claims.

Aviva, which released its financial results this morning, reported that its operating profit had increased by 6 per cent, as well as customer numbers increasing by 2 per cent to 33.4 million.

However, the company also said that since the spread of COVID-19 - otherwise known as coronavirus - it has had 500 claims on travel insurance, costing it £500,000.

It said that the virus “presents a new uncertainty” but that its “ scale, diversity and the strength” will allow it to meet the short-term challenges.

Maurice Tulloch, CEO of Aviva, commented: “In 2019, we set out our priorities and financial targets, strengthened our leadership team and remained focused on helping our customers prepare for a better future.

“We’ve made good progress, but there is much more to do.

“Our return on equity was 14.3 per cent and operating profit increased 6 per cent to a record £3.2 billion.

“Our capital position remains strong and resilient at a 206 per cent Solvency cover ratio.

“The board has increased the full year dividend by 3 per cent to 30.9 pence per share.

“Customers are choosing Aviva to help them save for their future, draw a secure income in retirement and insure what matters most to them.

“In 2019, we increased customer numbers by 2 per cent to 33.4 million, and improved customer satisfaction levels.

“My objective is to run Aviva better. We will improve business performance and enhance returns through disciplined action on expenses and underwriting.

“We will focus capital and resources where we can achieve competitive advantage and strong returns and we will take robust action across the portfolio where our performance falls short or where we can see a better way of delivering value to our shareholders.”

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