Aviva unveils claims hit of £50m from December freeze

Aviva is facing a claims bill of around £50million from last month’s freezing weather, it told investors on Wednesday. 

The insurance group said it had been focused on supporting customers during December’s prolonged cold snap, which saw households across the UK suffer from burst pipes and water tanks, as well as other damage.

Earlier this month, its rival, Direct Line Insurance, revealed a sizeable hit from the freezing weather, putting the cost of claims at around £90million.

Aviva said it performed as expected by management for 2022 and reiterated its guidance for dividends and capital returns.

The group’s full-year combined ratio, which measures costs as a proportion of income, was put at approximately 94.6 per cent. A ratio of 100 per cent or more indicates a loss. 

General insurance in the UK, Ireland and Canada continued to trade positively across the final months of 2022 and showed the ‘clear benefits’ of Aviva’s diversification across general insurance products and geographical regions, the group said.

Management also said that policies were being priced appropriately in order to take a high inflation environment into account. That was especially true of its UK Personal Lines, it added.

Over the fourth quarter, the group’s weather experience had been marginally above its long-term average.

Source of data and images: dailymail