Profit across Aviva Ireland increased by 7% to €61 million in the first half of the year, as a result of material growth in life operating profits.
In its general insurance business, operating profit at Aviva is down year on year to €31 million and net written premium is marginally down on the first half of 2018 at €248 million.
Chief executive, John Quinlan, said Aviva's combined operating ratio and key measure for profitability in general insurance remains robust at 91%, but has been adversely impacted by a new industry wide levy introduced in 2019 and an increasingly competitive market.
In the life insurance business, the present value of new business premiums increased to €859 million and operating profit grew by 104% to €30 million, as a result of expense savings and the full inclusion of Friends First in the 2019 figures.
Following Aviva's acquisition of Friends First in June 2018, the integration of the two life businesses has progressed leading to the increase in life operating profit. "Our integrated life business has been rebranded Aviva and we have delivered new Group and Individual Product Protection product suites to the market which will be followed by a new Pensions, Investment and Fund Proposition," Mr Quinlan said.
The chief executive said Aviva welcomes the recent passing of the Judicial Council Bill into law. He said this is a major step towards the material reduction in the levels of personal injury compensation awards. "Aviva maintains that until soft tissue injury award levels reduce significantly from current levels of 4.4 times those in England and Wales, we cannot deliver a sustainable reduction in claims costs and premiums for customers.
"We now urge government to establish the Judicial Council with the support of all stakeholders as soon as possible and would like to see a timetable for the recalibration of personal injury compensation awards."
