By Sabela Ojea

Aviva PLC said Thursday that it expects an improvement in the profitability of its underwriting for the full year after an improved first quarter.

The FTSE 100-listed insurer said general insurance gross written premiums in the first three months of the year rose to 2.0 billion pounds ($2.82 billion) compared with GBP1.9 billion for the year-earlier period, while new business in life insurance fell slightly to GBP11.8 billion from GBP11.9 billion.

The company said that its combined operating ratio --which compares claims, costs and expenses to premiums-- in the U.K., Ireland and Canada improved sharply to 90.6% from 118.7% thanks to a better underwriting performance, a favorable weather experience and a decline in Covid-19 related claims. A ratio of under 100% represents profitable underwriting.

"While the significant decline in motor rates seen over the last 12 months combined with increasing claims frequency as lockdown restrictions are lifted will have an impact on our combined operating ratio going forward, we still expect our full-year COR to be below 95%," the company added.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

05-27-21 0315ET