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«Disappointing results» for Aviva Canada, says its CEO Colm Holmes

by

Hubert Roy

2 August 2018 13:30

Colm Holmes

An insurer over claims that the many claims which occurred in the second quarter of 2018 have had a great impact on its financial results.

Colm Holmes, CEO ofAviva Canada has held its about then that the insurer reported this morning its results for the first half of 2018. The insurer, whose head office is in the United Kingdom, discloses two times per year.

Mr. Holmes holds, and statements similar to those of Charles Brindamour, Intact financial Corporation, and Rob Wesseling, the Co-operators. They have also said that the weather has hurt in the second quarter of 2018.

«Our results have been disappointing in Canada, expressed by Mr. Holmes in an opinion in which it commented on the results of the insurer. Primarily as a result of an unprecedented amount of climate-related disasters in the second quarter, which has swollen the number of claims reported of 13.5 %. «

Profit identical

In fact, the results presented by Aviva in the first six months of 2017 and 2018 are the same. The insurer generated a profit of 13 million pounds sterling, or a little over 22 million canadian dollars.

In its balance sheet by year-end 2017, Mark Wilson, CEO of Aviva, said to him, be disappointed in the results in Canada. A recovery plan is in progress, what has also complied Mr. Holmes in a short telephone interview that he has given of the insurance Journal this morning.

«We also experienced difficult market conditions in personal auto, also indicates Mr Holmes in his written comments. Our efforts are seen shackled in Ontario and Alberta by the regulatory framework which prohibits the increase in rates necessary to compensate for the constant increase of the costs of compensation. «

Similarly disappointing results in Québec

And what is it in Quebec ? The results have been disappointing also, » said Mr. Holmes in an interview in the Journal of the insurance. He stresses that the market is difficult, as insurance companies and personal insurance. He recalled the existence of a plan to make Aviva a player greater in Quebec.

«We have great ambitions for Québec. It is a market that is more free than elsewhere in Canada, that’s what I like. We need to diversify our activities, both in our portfolio and in our networks and respond to the choice of the consumer, » he says.

The Journal of insurance will publish a full report on the interview that Mr. Holmes has placed in us this morning in a future print publication. It will unveil the broad outlines of his vision for the development of Aviva Canada in Quebec.

Tightening of premiums and conditions

In the opinion shared by Aviva Canada this morning, Mr. Holmes indicates that in response to the difficulties encountered in the country, the insurer has raised premiums, tightened its criteria for the selection of risks and adjusted its strategies of distribution and claims management. «Our results, excluding exceptional items, is progressing, which is encouraging. We expect that this progress will translate into profitable growth from the second half of 2018, and thereafter, » he said.

Mr. Holmes added that his top priority remains to bring the operating income and operating ratio combined Aviva acceptable levels. «With the help of our strong network of brokers, we will focus on profitable growth, the efficient management of allowances and the improvement of our resistance to external events. I have every confidence in the ability of Aviva to bounce back. Thanks to the talent and determination of our employees. They show a deep concern for the well-being of the company and the quality of the support provided to our customers, brokers and other partners in our distribution network. «

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