Companies
March 7, 2024
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Surge in Private Health Insurance Demand Boosts Aviva's Profits
Longer waiting lists and increased claims lead to a 9% rise in Aviva's profit.
The surge in demand for private health insurance in the UK, fueled by extensive NHS waiting lists, has substantially boosted Aviva's annual profits. This rise is driven by increased claims frequency and higher medical costs, leading to elevated premiums. Aviva's health insurance division saw a remarkable 41% sales increase in 2023, contributing to a 9% rise in annual operating profits to £1.5 billion.
CEO Amanda Blanc attributes this surge to both individual and corporate clients opting for health cover amidst ongoing strains on the state health service. CFO Charlotte Jones highlights a growing trend of companies prioritizing health cover for their employees.
The escalation in premiums is linked to rising medical expenses and more frequent claims, prompting individuals to opt for private health cover to ensure timely treatment. Despite speculation of a potential takeover by Italian insurer Generali, Aviva remains resolute in prioritizing business performance, with the company envisioning further growth potential in its share price.
