Insurance firm Aviva Ireland, which saw its profits surge 20% last year, has called for a speedy implementation of the recommendations made in this week’s cost of insurance report,
Operating profit at Aviva Ireland rose to €82m, while the value of new business in life and pensions rose a third to €29m. Its general insurance business increased net written premiums by 19%.
Chief executive John Quinlan called for accident payouts for minor injuries to be reduced. “The cost of claims remains a serious challenge in the personal motor market.
Aviva welcomes the report of the Government’s Cost of Insurance Working Group and calls for its speedy implementation. In particular, we believe the compensation awards for minor soft tissue injuries must be reduced,” he said.
He said Aviva, which employs 1,150 people in Ireland and insures one million customers, will work with the Government and stakeholders to drive down claims’ costs for the benefit of consumers.
In London, parent company Aviva’s share price rose 7% following its results. The British firm said it generated forecast-beating annual profit, boosted by growth in general insurance and asset management, saying more of its growing cashpile would be handed back to shareholders in 2017, sending its shares higher.
Aviva, which traces its roots to the sale of fire insurance in 1696, posted a 12% increase in operating profit to £3bn (€3.4bn). n Additional reporting Reuters.