Aviva Canada results buoyed by growth in auto premiums and property lines price increases

Aviva plc reported a total operating profit of £1.3 billion (approximately Cdn$2.1 billion), up 5% from last year’s six-month operating profit of £1.2 billion (Cdn$1.9 billion). The total is up 13% excluding impact of an £84-million special distribution benefit in 2010.Overall, the group reported a 96% group combined operating ratio (COR), beating a target COR of 97%.In commentary specific to Canadian operations, Aviva plc noted net written premiums in Canada increased to £1,025 million (approximately Cdn$1.6 billion) in the first half of 2011, compared to £996 million (Cdn$1.59 billion).The company said this is “due to growth in motor insurance and price increases in our property insurance business, offset by lower premiums written in our liability insurance business.”In Canada, operating profit decreased 11%, to £118 million (Cdn$187.9 million), “primarily as a result of lower new money yields in our investment portfolio that more than offset higher underwriting profits,” the company reported.