Private healthcare sales boom for Aviva in wake of NHS struggles

Aviva’s statement did not make any direct mention of the NHS but the announcement comes in the context of well-publicised challenges for the public healthcare system.

Data released earlier this month showed that a raft of NHS targets are currently being missed, including a key 62-day cancer target.

The Government and NHS England set the ambition of returning the number of patients waiting more than 62 days to pre-pandemic levels by March 2023.

However, the data showed that the number of patients waiting longer than 62 days since an urgent GP referral for suspected cancer stood at 19,248 in the week ending April 2.

The average weekly figure for February 2020 was 13,463.

The Government has also missed a target of eliminating 18-month waits for planned NHS care such as knee and hip replacements, though numbers have fallen dramatically in recent months.

Aviva’s increasing private healthcare sales were part of a wider 11 per cent increase in its protection and health revenue, which was up to £102m in the first quarter of the year.

General insurance sales also increased by 11 per cent to hit £2.4bn.

Ms Blanc said: “We have delivered an encouraging start to 2023 and continue to build clear trading momentum.

"New business volumes are good, despite persistent economic uncertainty, and we delivered another quarter of strong growth across our diversified business.

"The bulk purchase annuity market is very active due to the higher rate environment, and we have now completed over £2 billion of deals so far this year.

"Our workplace pensions business is also very buoyant, with flows up 25 per cent due to 134 new scheme wins and higher wages feeding through to higher pension contributions.

"Our general insurance business goes from strength to strength.

"We have grown premiums 11 per cent and maintained attractive levels of profitability, thanks to our disciplined management of inflationary pressures and our balanced mix across personal and commercial lines, and across the UK, Ireland and Canada.

"Aviva is uniquely placed to successfully navigate the prevailing economic environment, and we continue to support our customers through this challenging time.

"We have market leading positions in high growth areas.

"We are financially strong with an attractive and growing dividend, and we are confident in the prospects for Aviva."

The company’s trading statement added that it is “on track” to deliver its savings target of £750m (gross of inflation) by 2024 relative to its 2018 baseline.