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(Alliance News) - Aviva PLC on Wednesday left returns guidance unchanged as the insurer put the cost of a UK cold snap late last year at GBP50 million.
Aviva shares were 2.3% higher at 451.25 pence each in London on Wednesday morning, among the best FTSE 100 performers.
The London-based company also updated on its general insurance business, expecting a group combined operating ratio in line with guidance for 2022.
"Aviva's GI businesses in the UK, Ireland and Canada continued to trade positively over the closing months of 2022, demonstrating the clear benefits of our diversification across GI products and geographies," the company said.
Aviva expects a combined operating ratio of 94.6%, in line with guidance given back in November, but worsened slightly from 94.1% in 2021. A reading above 100% indicates a loss on underwriting, so the lower the better.
"We continue to price appropriately for the high inflation environment, in particular in UK Personal Lines, responding at pace to emerging data and trends," Aviva said.
Claims stemming from a UK freeze event in December amounted to GBP50 million, Aviva said, though it added that its "weather experience" for 2022 was largely in line with its long-term average. It was only "marginally" above the long-term average in the fourth quarter.
The company also maintained returns guidance. It said in November that it expects a 31.0 pence per share payout for 2022 and 32.5p for 2023. In addition, it said at the time that it intends to "return further capital to shareholders" next year.
Aviva declared a 10.3p interim dividend this year and paid 22.05p for all of 2021.
By Eric Cunha, Alliance News news editor
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