GlobalData figures present that Aviva is already the dominant market chief in a variety of key life insurance coverage merchandise within the UK, together with crucial sickness, entire of life, and revenue safety, and it’s set to extend its prominence additional following the acquisition of AIG Life for £460m ($564m).
GlobalData’s 2022 UK Insurance coverage Client Survey discovered that Aviva was the market chief for whole-of-life merchandise with a market share of 27.0%. Its closest competitor was Authorized & Basic, which had a share of 12.8%. AIG Life was the Tenth-largest participant on this market with a share of two.1%. The story may be very comparable for each crucial sickness and revenue safety, the place Aviva had shares of 26.6% and 31.0%, respectively, in 2022. In each circumstances, the second-largest participant out there was significantly smaller (12.8% and 12.7%, respectively). Subsequently, this substantial deal will solely improve the dominance that Aviva holds within the UK life insurance coverage market.
This highlights Aviva’s latest repositioning to give attention to its stronghold markets within the UK, Eire, and Canada and transfer away from Japanese Europe, the place it has been regularly pulling away in recent times. It additionally highlights the issue dealing with the smaller gamers out there. AIG Life is a really established participant throughout the UK life insurance coverage market; it was the tenth-biggest participant within the whole-of-life market and thirteenth in crucial sickness in 2022, in response to GlobalData.
GlobalData discovered the variety of life insurance coverage contracts declined by 23.4% and the worth of premiums by 11.7% in 2022. The tough surroundings, mixed with the continued cost-of-living disaster and inflation, makes this a tough market during which to function and make a revenue at current. That is emphasised by Aegon UK and Canada Life additionally exiting the UK life market in April and Might 2023, respectively.
Aviva’s dominance out there permits it to carry much more capital and get by means of harder intervals, although it appears as if the market will get much less aggressive within the brief time period.