Aviva is targeting an increase in general insurance premiums of 20% by 2022.

Other objectives were outlined for general insurance, including a 95% combined operating ratio and to achieve £2bn - £2.5bn of cumulative cash remittances (2019/22).

The firm aims to reduce debt by £1.5bn and to reduce costs by £300m net savings by 2022, at group level. It targets £8.5bn - £9bn of cash inflows between 2019 and 2022.

Speaking at a press conference this week, chief executive, Maurice Tulloch said the insurer wrote £9.1bn of premiums in 2018, with a 64/36 split between personal and commercial lines.

Tulloch added the insurer would invest £1.3bn over the next three years “especially in higher return businesses” such as general insurance and the new division, investments, savings and retirement.

“Aviva’s focus is delivering sustainable growing returns to shareholders,” he said.

“Our forecast cash flows are more than sufficient to sustain our dividend, reduce debt and grow Aviva. Our return on equity target of 12% underpins our progressive dividend for the long-term.”

As part of this, Aviva’s business is to be restructured across five operating divisions: Investments, Savings and Retirement; UK Life; General Insurance; Europe Life and Asia Life.

“I am committed to running Aviva better,” Tulloch stressed. “We will be more commercially-focused, manage costs rigorously and be more disciplined in how we invest.”

Earlier this week, Aviva announced it would retain its business in Singapore and its joint venture in China while continuing to explore options for some other Asian operations, including Hong Kong, Vietnam and Indonesia.

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