On behalf of Aviva Insurance Ireland, I am pleased to share our full year 2019 financial results for our general insurance business.Our results highlight that we are providing our shared customers with the protection they need at a price that is sustainable. I would like to thank you for your continued support that strongly contributed to our success in 2019.
Key Highlights:
Our general insurance (GI) business remains profitable in a very competitive market with strong foundations resulting in an Operating Profit of €50m.
We completed the restructuring of our GI business in Ireland creating a strong and focused end-to-end business fully regulated in Ireland.
We currently service the needs of over 900,000 customers across our GI business.
We are a core market within Aviva’s European Division which has resulted in significant investment in our business by our shareholders. Our businessis part of one of the most financially strong global insurance groups as illustrated by our Group results today and our general insurance business in Ireland is rated AA- (stable). This means that your customers can be safe in the knowledge that we will be there to protect them when they need us most. Last year we paid out €267 million in claims to our customers.
Aviva has been present in the Irish insurance market since 1780, or 240 years. As one of the leading broker focused general insurers in Ireland, we in Aviva want to operate in a competitive Irish insurance market that is stable and sustainable for our customersand partners and we continue to work with government and industry bodies to achieve this for all our stakeholders: -
Motor Insurance Premiums: We believe that continuing volatility in motor premiums is detrimental to both customers and insurers. Aviva are pricing on a realistic and sustainable basis to protect our customers from this volatility, but the continuing high costs of personal injury awards is one of the main drivers of the cost of claims and premiums. Aviva has led the market in advocating for reform and we supported the establishment of the Judicial Council to reform the level of personal injury compensation awards and other in-progress reform legislation. But we now urgently need to see the new government, when appointed, implement all necessary reforms to deliver lower personal injury claims costs.
Commercial Insurance: Aviva continue to be one of Ireland’s leading commericial insurance providers insuring one in five SME’s across all commercial sectors by underwriting and pricing prudently. At a time when many segments of the market cannot source affordable cover, we insured Athy RFC when no other insurer was willing to provide a quote and we cover many other rugby clubs in Ireland. We also provided Personal Accident cover for the Leinster Senior League to ensure matches did not have to be postponed and the league could continue. The high costs of personal injury awards are also one of the main factors leading to the increased cost of commercial insurance for our business customers. There are also other issues which are driving up premiums which require urgent reform.
Brokers are our key distribution channel and we are committed to supporting the development of your business. Our GI Sales Team and our technical specialists under Seán Boyle and his management team will welcome any suggestions that you may have on ways to support the development of your business.
Our strong brand continues to shine for our customers and partners as we remain one of the most trusted insurance brands in Ireland, while our sponsorship of Aviva Stadium and two of Ireland’s major international sports gives us the opportunity to promote our general insurance business to Irish consumers. This is reflected in our Relational Net Promoter Score (RNPS), a figure we, at Aviva use to quantify our customers feedback, where we have outperformed competitors by scoring 37 points, which is 25 ahead of competitors and six points ahead of our 2018 figure. This is a clear indication of how much we understand our customers and take pride in doing things well by offering them the best possible experiences.
On behalf of everyone in Aviva Insurance Ireland, I wish to extend a personal thanks to you for your support and commitment over the past 12 months and look forward to working in close partnership with you over the rest of the year.
Aviva Insurance Ireland Designated Activity Company, trading as Aviva, is regulated by the Central Bank of Ireland. A private company limited by shares. Registered in Ireland No. 605769. Registered Office: One Park Place, Hatch Street, Dublin 2, Ireland, D02 E651.
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