Aviva braces for £160m impact amid ‘strong’ Q1

Aviva has revealed it made a “strong start” to the year, reporting a “solid” first quarter of trading in its latest financial results.

In the first quarter of 2020, the group saw a “strong performance” in life insurance, with sales surging 28% to £12.3bn. 

The value of new business increased 18% to £311m, while general insurance sales also increased 3% to £2.4bn in the period. 

Despite the “strong” results, the insurance agent estimates that pandemic-related claims in its general insurance business, incorporating both notified and projected claims, will have an impact of £160m. 

The group said that the ultimate impact still has a “high level of uncertainty” due to the early stages of claims development, however. 

It added that early second-quarter trends have seen new business sales decline across many of its businesses, and sales volumes for the overall year are “likely to remain below expectations”. 

Maurice Tulloch, Aviva group CEO, said: “In responding to Covid-19, Aviva moved quickly to support customers, introducing a range of measures to help, including financial assistance. 

“I am proud of how Aviva’s people have adapted and maintained excellent day to day service for our customers when they need us most.” 

He added: “The economic outlook remains uncertain and will affect our business, however the strength of our capital liquidity means we are well positioned to manage the crisis and continue to support our customers.” 

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