Aviva recently published its financial results for the first half of 2025, showing steady Canadian performance despite volatile weather and a challenging regulatory landscape.
Aviva Canada CEO Nav Dhillon (pictured) says his outlook for the rest of 2025 is one of optimism, with the insurer expecting to carry forward the momentum built in the first half of the year.
Dhillon said that some of the key variables that could influence results in the coming months are largely beyond the company’s control – namely macroeconomic conditions and elevated weather activity. From wildfires in Western Canada to storms in Atlantic regions, extreme weather has already been a defining feature of 2025, and Dhillon expects it to remain a factor through year-end.
He stressed, however, that disciplined underwriting and risk management have positioned Aviva Canada to weather such volatility, just as it has done so far this year.
“Elevated weather activity” will be monitored closely, alongside any shifts in the regulatory landscape – particularly in Alberta, where reforms to the auto insurance system are expected to take shape in the near term, Dhillon said.
He acknowledged that both Aviva Canada – and the wider insurance industry – face broader headwinds that require constant vigilance. He said one priority for the leadership team is to focus on what they can control.
The macro environment, he noted, remains highly uncertain, with developments such as evolving global tariff situations and domestic economic pressures adding complexity. These factors, combined with persistent claims cost inflation, mean insurers must stay disciplined and responsive to changing market conditions, Dhillon said.
While catastrophe events have added pressure to claims costs, Dhillon said the underlying personal lines performance in H1 was a standout. He credited the team’s focus on fundamentals for delivering results that don’t necessarily show up in the headline numbers.
That resilience has been achieved despite operating in a challenging regulatory environment. Dhillon said Aviva Canada is “eagerly” anticipating the impact of Alberta’s upcoming reforms, which could benefit both customers and the company’s long-term outlook.
Beyond underwriting performance, Dhillon pointed to progress in strengthening Aviva Canada’s claims proposition. The company is leveraging its own network to speed up processes, improve communication, and deliver more efficient outcomes for customers – a behind-the-scenes initiative that Dhillon believes will become a long-term competitive advantage.
Aviva plc reported a 22% year-on-year increase in group operating profit to £1.07 billion for the first half of 2025, up from £875 million in the same period last year. The insurer said 66% of operating profit was now generated from capital-light businesses.
In Canada, general insurance premiums totalled £2.15 billion, with personal lines up 9% on continued pricing actions in property and auto. Commercial lines were 3% lower due to reduced volumes in Global Corporate & Specialty from portfolio management actions aimed at prioritising margin over volume.
Operating profit for the division was £218 million, up 7% year-on-year, supported by an improved underlying result partly offset by adverse weather-related catastrophe events. The undiscounted combined ratio was unchanged at 94.7%, while the discounted COR stood at 91.5%. Solvency II Own Funds Generation was £157 million, and cash remittances rose 17% to £80 million.
The unit's prior year’s results were impacted by a COR of 98.5% in 2024, attributed largely to severe weather events, which increased claims costs in property lines and reinforced the focus on underwriting discipline and portfolio optimisation.
Dhillon’s appointment wasn’t the only leadership change as John Lally was promoted to chief claims officer in May.
Chief executive Amanda Blanc said the company had transformed its performance over the past five years.
“Today we are the UK’s leading diversified insurer, with a strong track record of delivery, and an unwavering commitment to our customers. We are very well positioned to accelerate growth in the capital-light areas of wealth, health and general insurance, and deliver more and more for our shareholders,” she said.
