Aviva (AO) | Hold | Q1 26 call: UK personal lines hardening

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Aviva (AO) | Hold | Q1 26 call: UK personal lines hardening

motor pricing up around 2.5% (vs market commentary +1%) and UK home +2% (vs market commentary -1%.

Commercial pricing conditions remain competitive, and for Aviva, underwriting discipline remains central. SME rates were

described as still “adequate” (>100%), while GCS pricing was said to be “well over” adequacy thresholds. Rate adequacy for new

business is being maintained very diligently, and for example, for a new quote, Aviva has put a 10% higher rate and lost business

to competitors.

There is differentiation between business lines, but in line with peers, financial lines and commercial property were seeing the

most competitive pressures. CEO Amanda Blanc stated that she has 35 years of experience in the business, and the one thing you

learn is, “Do not grow into a soft market aggressively”. Aviva did lose 2 or 3 big accounts in Q1 26 where it did not compromise.

Confident of Canada CoR approaching 94%.

Canada Q1 26 CoR of 91.8% reflected both profitability actions and a more benign weather quarter, and it was cautioned that this

should not be viewed as materially ahead of FY 26 ambition of approaching 94%. Q3 is still expected to be the heaviest

catastrophe/weather quarter. There was also somewhat stronger PYD contribution across the group, including Canada.

A major focus remains on claims efficiency and repair network optimisation. There is an ongoing rollout of the garage network

strategy, with the UK Solace team spending time in Canada. The segment will be looking to mirror the UK strategy of increasing

control over the claims value chain to improve indemnity savings and operational efficiency over time.

BPA market seeing increased competition