AM Best affirms A+ rating for Aviva Insurance in London
- AM Best has affirmed the Financial Strength Rating of A+ (Superior) and a Long-Term Issuer Credit Rating of 'aa-' (Superior) for Aviva Insurance Limited.
- The ratings are a reflection of Aviva’s strong financial position and operating performance, with a robust balance sheet and stable leverage.
- Aviva Insurance Limited plays a strategic role within the company as a leading non-life insurer in the UK, showcasing a strong market presence despite challenges.
On October 18, 2024, AM Best, a global credit rating agency, confirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of 'aa-' (Superior) for Aviva Insurance Limited in the United Kingdom. This affirmation underlines the consolidated balance sheet strength of the Aviva group, which is assessed as exceptionally strong. The agency emphasized Aviva's solid operating performance and notable business profile, concluding that the company effectively manages its enterprise risks. The ratings also recognize Aviva Insurance Limited's significance as the principal UK-based non-life insurer, contributing significantly to the group's revenue from non-life insurance services. AM Best's evaluation encompasses various factors including the company's risk-adjusted capital adequacy, which is at the highest level according to Best's Capital Adequacy Ratio (BCAR), and its strategic measures taken in recent years to stabilize and strengthen its balance sheet. In the reported financial year ending 2023, the group posted a profit after tax of GBP 1.1 billion, translating to a return on equity of 11.2%. This positive outcome is credited to a well-diversified product portfolio across both life and non-life sectors. Notably, despite recent adverse market conditions in retail and challenging weather events, the non-life underwriting segment remained a robust contributor to profitability. Overall, Aviva continues to maintain leading positions in key markets such as the UK, Ireland, and Canada. The company's well-diversified business model enables it to navigate market fluctuations effectively, ensuring sustainable growth and operational stability in the insurance sector.