Aviva publishes 2024 SFCR showing solvency ratio at 196%
Aviva has published its 2024 Solvency and Financial Condition Reports, with the group SFCR showing total regulatory eligible own funds of £17,323 million against the Group SCR at 31 December. The disclosures cover Aviva plc, Aviva Insurance Ireland DAC and Aviva Life and Pensions Ireland DAC, and set out solvency coverage ratios and capital surpluses across the group.
Capital position and solvency coverage
For 2024, Aviva Insurance Ireland Designated Activity Company reported total eligible own funds to meet the Solvency Capital Requirement of €246m at 31 December. The company’s SCR at the same date was €152m, resulting in a Solvency II cover ratio of 162% and a surplus of eligible own funds over the SCR of €94m.
Aviva Insurance Ireland DAC also reported a Minimum Capital Requirement of €42m at 31 December, compared with its SCR of €152m. The SFCR states that movements in own funds during the year were largely driven by €20 million of new shares issued, with €15m of that subsequently treated differently as described in the report.
Aviva Life and Pensions Ireland DAC reported an SCR of €416.5m at 31 December, covered by €643.2m of eligible capital. This provided a Solvency II coverage ratio of 154% and a Solvency II surplus of €226.7m at year-end.
At group level, Aviva plc reported total regulatory eligible own funds to meet the Group SCR of £17,323 million at 31 December, of which £12,492 million was represented by unrestricted tier 1 capital. KPMG’s year-end 2024 analysis of life insurers’ disclosures states that Aviva’s coverage ratio fell by 4% at year-end 2024 compared with the prior year.
Group structure and transactions
The Aviva plc Single Group-wide SFCR confirms that the group completed its acquisition of AIG Life UK Limited on 8 April. The same SFCR also reports that Aviva’s investment in Singapore completed on 18 March, adding to the list of corporate actions reflected in the group solvency position.
Reporting perimeter and disclosures
Aviva Insurance Ireland Designated Activity Company published its Solvency and Financial Condition Report for 2024, covering its capital position and risk profile at 31 December. Aviva Life and Pensions Ireland DAC separately published its SFCR for 2024, reporting its SCR, eligible capital, coverage ratio and surplus at the same date.
Aviva plc published the 31 December 2024 Single Group-wide SFCR on its regulatory returns webpage, providing the consolidated view of own funds, SCR coverage and the impact of group transactions. The group SFCR sets out the composition of regulatory eligible own funds, including unrestricted tier 1 capital of £12,492 million within the total £17,323 million reported.
The next formal update to Aviva’s regulatory solvency position will depend on its 2025 reporting cycle, as no interim SFCR timetable is specified in the disclosures referenced.
--- Sources: Pending Research https://static.aviva.io/content/dam/aviva-public/ie/pdfs/aviva-insurance-ireland-sfcr-2024.pdf https://www.centralbank.ie/docs/default-source/regulation/industry-market-sectors/insurance-reinsurance/solvency-ii/sfcr-2024/aviva-life-and-pensions-ireland-dac-sfcr-2024.pdf?sfvrsn=6ab86e1a_3
