Aviva Ireland reports strongest performance in five years

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Aviva Ireland has announced an increase in profits of 32% in 2015. It took in an impressive €91.2 million, a massive improvement on the 2014 figure of €69 million.

It represents the company's finest performance in half a decade.

Taking non-insurance activity at the firm into account, its operating profit was €85 – an increase of 39%. This activity refers to pension deficit funding for Irish staff's pension scheme.

Operating expenses were static at €165 million. The insurer's success of late was perhaps best represented by the fact it almost doubled its new business in life and pensions. A 97% increase brought that figure up to €22.2 million.

Customer numbers in general were up by 6%. The firm's fortunes were aided by a "benign year" that saw less weather damage claims than expected.

Business also picked up in the second half of the year, as public hospital claims fell below expectations and less people switched to cheaper cover than expected.

Hugh Hessing, CEO of Aviva Ireland, has said:

"This performance was bolstered by prior year releases as well as lower than expected volumes of public hospital claims and a reduction in the number of customers trading cover for lower premiums."

The news follows yesterday's announcement that Aviva Health is being sold to Irish Life for an undisclosed sum. Aviva Ireland noted that the sale would not affect its general insurance and life and pensions businesses. 

It will bring the number of Irish Life health insurance customers to over 400,000.

Irish Life Chief Executive Bill Kyle says the group will increase Irish competition in terms of price and innovative products, which could possibly include the bundling of life assurance and health insurance packages.

 

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