Aviva keeps dividend, capital returns guidance after UK's December cold snap

Access to the comments Comments
By Reuters
Aviva keeps dividend, capital returns guidance after UK's December cold snap
Aviva keeps dividend, capital returns guidance after UK's December cold snap   -   Copyright  Thomson Reuters 2023

LONDON – British insurer Aviva on Wednesday maintained its dividend guidance and capital returns outlook as it reported a positive end to trading for the year in its general insurance unit.

The company said it expects the group’s full-year combined operating ratio to be around 94.6%, in line with guidance given at its third-quarter update.

“We continue to price appropriately for the high inflation environment, in particular in UK Personal Lines, responding at pace to emerging data and trends,” the insurer said in a statement.

One of Britain’s biggest motor and home insurers, Aviva estimated December’s adverse weather conditions in the UK to cost around 50 million pounds ($61.65 million), and said it was continuing to support customers following the cold snap.

Over the course of 2022, it said its weather experience in its UK & Ireland business was only marginally above long-term averages whilst its Canadian business actually recorded lower than long-term averages with no fourth quarter weather events.

($1 = 0.8110 pounds)