Aviva Ireland half-year profits climb 7% to €43m

Aviva Ireland has warned of the “serious challenge” claims costs continue to pose in the personal motor insurance market as it announced a €43m operating profit in the opening six months of the year.

The insurer increased its profit by 7% in H1 2016 from €40m a year ago. The general uptick in business was also evidenced by a 3.5% increase in combined operating ratio — a key measure of profitability — to 90%.

Aviva Ireland chief executive Hugh Hessing attributed the company’s improved performance to “delivering on its strategy of sustainable growth while offering competitively priced insurance cover to its customers”.