Aviva keeps dividend, capital returns guidance after UK's December cold snap

By - Reuters

LONDON (Reuters) - British insurer Aviva on Wednesday maintained its dividend guidance and capital returns outlook as it reported a positive end to trading for the year in its general insurance unit.

The company said it expects the group's full-year combined operating ratio to be around 94.6%, in line with guidance given at its third-quarter update.

"We continue to price appropriately for the high inflation environment, in particular in UK Personal Lines, responding at pace to emerging data and trends," the insurer said in a statement.

One of Britain's biggest motor and home insurers, Aviva estimated December's adverse weather conditions in the UK to cost around 50 million pounds ($61.65 million), and said it was continuing to support customers following the cold snap.

Over the course of 2022, it said its weather experience in its UK & Ireland business was only marginally above long-term averages whilst its Canadian business actually recorded lower than long-term averages with no fourth quarter weather events.

($1 = 0.8110 pounds)

(Reporting by Simon Jessop, editing by Sinead Cruise)

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