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Highlights
- Aviva Plc, the insurance major, is on the radar of ESG conscious investors as it is focusing on renewable energy insurance and is working towards achieving the net-zero targets.
- Aviva’s renewable energy insurance business has grown by over 150% since the launch of its renewable energy portfolio in 2019.
UK-based global life insurance firm Aviva plc (LON: AV.) has been attracting the attention of investors, especially the ESG (Environmental, Social, and Governance) conscious ones, as the company is investing in renewable energy insurance and is working towards achieving the net-zero targets.
Focusing on the renewable energy insurance business
In 2019, Aviva moved away from insuring the power generation through fossil fuels and shifted towards the renewable energy insurance business, which has witnessed a growth of over 150% since 2019, when compared to the fossil fuel insurance business. This significant growth in the business in such a short time span can be attributed to the strong presence of Aviva in the fields of battery storage, onshore wind, and solar power. By the end of this year, the leading general insurer aims to become a market leader for the insurance of battery storage and hold a position as one of the top three renewable energy insurers in the UK market.
The integrated package of Aviva offering renewable energy insurance is tailor-made for different kinds of customers. The increase in the battery storage cover, which allows efficient electricity storage regardless of weather conditions or any other kinds of disruptions, has particularly supported the growth of Aviva’s renewable energy insurance business.
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Image description- Aviva focusing on renewable energy insurance business
Huge investments have been made by the insurance company for gaining expertise in the field of renewable energy and meeting the net-zero targets. With a dedicated underwriting team, the renewable portfolio of the company has swiftly expanded in line with its objective of not insuring businesses associated with power generation using fossil fuels, such as mining or extraction projects for new fossil fuels, and building or operating of thermal coal mines. Aviva doesn’t insure these kinds of carbon-intensive businesses in line with its ESG Baseline Underwriting Statement.
Performance update
The London-headquartered life and pensions provider, Aviva has been listed on the main market of the London Stock Exchange since June 1990. With a current market cap of £16,400.46 million, the FTSE100-listed company has delivered a return of 21.93% to its shareholders over the last one year as of 16 February 2022, while its year-to-date return stands at 7.07%.
Aviva plc’s shares were trading at GBX 439.30, up by 0.25%, at 10:00 AM (GMT) on 16 February 2022.
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Bottomline
Ever since Aviva has launched its renewable energy portfolio, its performance has been consistently improving, mainly owing to the rapid transition of the UK towards renewables with the aim of achieving its net-zero targets. The company is successfully offering risk management solutions to businesses that are making efforts to shift away from high carbon fuels.
