NHS waiting lists boost demand for private healthcare insurance
THE NHS backlog is boosting demand for private health insurance, according to the chief executive of Aviva.
Amanda Blanc said people are “looking for alternatives” as the company saw a jump in health insurance sales.
Patients in England are facing record queues, with more than seven million waiting for treatment at the end of 2022.
Rishi Sunak, the Prime Minister, has made cutting waiting lists a priority.
Ms Blanc told Bloomberg TV: “Health insurance sales were up 15pc and we expect that to continue as people are looking for alternatives to the NHS.”
A rise in insurance premiums helped the FTSE 100 company report a 35pc rise in operating profit for 2022, to £2.2bn, compared to £1.6bn in 2021. It announced a £300m share buyback and a final dividend of 20.7 pence per share for 2022.
The company has now paid out more than £5bn to investors since 2021 and analysts at JP Morgan said it “offers one of the strongest levels of total capital return in the sector”. Ms Blanc took over three years ago, and has cut costs and raised billions from selling business units.
She has been under pressure from activist investor Cevian Capital, but won its praise yesterday.
The results showed Aviva had made a “strong start to the next phase” of delivering long-term potential, Cevian said.
Niko Pakalen, partner at Cevian, said: “Amanda Blanc and the board of Aviva have done an excellent job in restructuring the company.”
The company’s general insurance gross written premiums increased 8pc to £9.7bn. Ms Blanc also urged the UK to stop “talking ourselves down” amid growing concern about the country’s growth prospects.