Aviva warns it will take €450m hit over personal injury rule change

Insurance giant Aviva has warned it will take a €450m hit after the Government announced a change to the way personal injury claims are calculated.

The Norwich-based firm said the exceptional charge to its full-year post-tax profits recognises the "magnitude of the change in policy and the potential for future revisions to the discount rate to cause unnecessary volatility in Aviva’s results".

Lord Chancellor Liz Truss surprised the insurance market on Monday by putting forward changes to the Discount Rate calculation, which is expected to increase payments given to victims of life-changing injuries through medical negligence, car crashes and other incidents.