Aviva Ireland reinsurance deal with parent depresses profit at Irish business

Aviva Insurance Ireland ceded €70 million of net underwriting profit to its UK owner last year as it reinsured most of the motor, home and commercial insurance business written in the Republic with its parent.

While the reinsurance deal with its parent – known in the industry as a quota share agreement – allows Aviva Insurance Ireland to share risks written in the Republic more widely across the group, it also depresses the reported profitability of the local entity in good times.

Aviva Insurance Ireland, the third largest insurer in the Republic by premium income, reported an underwriting profit of €15 million last year, the company said in its latest annual solvency and financial condition report. The report notes that €70 million in net underwriting profit ended up with the UK unit under the reinsurance deal.

The company reported ...
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