Aviva (AV) has reported an increase in profits as more people in the UK turn to private health insurance. With reports of long waiting lists for NHS treatment and rising medical costs, Aviva’s health insurance sales rose by 41% in 2023.
Aviva profits rise amid insurance boom
This growth was driven by businesses as well as individuals moving on to private healthcare rather than relying on the state’s services. This helped Aviva’s annual operating profits get a 9% boost in 2023, outperforming analyst predictions by reaching £1.5bn last year.
Dame Amanda Blanc, the chief executive at Aviva, received remuneration of £6.6m in 2023. Blanc said that people are looking at the current situation in the NHS and thinking that “I can afford to buy health cover, so I will do that”.
A recent trend for small companies to protect their employees with health cover has helped drive the market, while many larger firms are extending their policies. Aviva is now the third-largest operator in the UK market, with 1.2 million people covered, putting it behind only BUPA (63LI) and AXA (Paris: CS).
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Blanc dismissed concerns that the company could be the subject of a takeover bid from abroad. Italian insurance giant Generali (Milan: G.MI) is said to have Aviva on a list of possible takeover targets, but the Aviva CEO said that this is just market chatter. She also pointed out the improvement made in the organisation’s performance since she took over three years ago and how strong performance is the best defence.
