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AM Best Assigns Credit Ratings to Aviva Insurance Limited

AM Best has assigned a Financial Strength Rating of A+ (Superior) and a Long-Term Issuer Credit Rating of “aa-” (Superior) to Aviva Insurance Limited (AIL) (United Kingdom). AIL is a wholly owned subsidiary of Aviva plc (Aviva) (United Kingdom), the non-operating holding company of the Aviva group. The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings of AIL reflect its strategic importance and deep integration to Aviva as a leading provider of non-life insurance in the United Kingdom. The credit fundamentals of AIL reflect Aviva’s consolidated balance sheet strength, which AM Best assesses as very strong, as well as the group’s strong operating performance, favourable business profile and appropriate enterprise risk management. AIL is the group’s main U.K.-based non-life insurer and is the principal contributor of non-life premium income.

Aviva’s balance sheet strength is underpinned by its consolidated risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best’s assessment of the group’s risk-adjusted capitalisation includes contribution from economic capital embedded in long-term business and equity credit for hybrid debt. In recent years, the group has observed a significant reduction in the sensitivity of its balance sheet to interest rate risk and has taken actions to reduce its debt burden. As of June 2023, Aviva reported a healthy estimated Solvency II coverage ratio of 202% (year-end 2022: 212%). The group’s asset-liability and liquidity management also are supportive of the balance sheet strength assessment.

Aviva has reported strong operating performance in recent years, with a five-year weighted average return-on-equity ratio (2018-2022) of 8.8% (as calculated by AM Best), benefiting from a well-diversified portfolio by product across the life and non-life segments. Profitability has been supported by strong growth across protection, annuity and savings products, combined with improving new business margins. Aviva’s reported new business margin in 2022 was 2.3% (2021: 1.9%), while its non-life combined ratio was 92.7% (2021: 93.9%) (as calculated by AM Best), despite challenging macroeconomic conditions and inflationary pressures.

Aviva’s business is focused on its core markets of the United Kingdom, Ireland and Canada, where it maintains leading positions in several lines of business. The group’s business profile is well-diversified by product, both in life and non-life insurance, and by distribution channel.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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