Aviva facing £160m coronavirus hit

Aviva has estimated it will pay out £160m net of reinsurance for coronavirus related claims based on analysis as of the 30th April.

The claims forecast is based on estimated claims in business interruption insurance of £200m, other commercial lines and travel insurance and allows for favourable impacts in other product lines.

The forecast was confirmed as the insurer revealed UK net premiums written increased 1% to £1bn for the first three months of the year, with a 9% increase in commercial lines. The UK storms resulted in claims of an estimated £70m.

Across the group Aviva saw general insurance net written premium up 3% to £2.4 bn. Excluding COVID-19 impacts, Canada achieved strong underwriting results while the UK was affected by the February storms.

Group chief executive officer, Maurice Tulloch commented that new business sales in many of its businesses had fallen since the beginning of April and that sales volumes for the year overall are likely to remain below expectations.

“We remain committed to achieving our 2022 targets, however, COVID-19 is expected to provide additional challenges to achieving these targets. We remain focused on enhancing customer and operational fundamentals to drive improved returns, better efficiency and cashflow,” he added.

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