Aviva half-year results have showcased a remarkable performance in the first half of 2025, with the UK insurance giant posting a 22% increase in operating profit to £1.07 billion. This impressive result, driven by solid growth in insurance, wealth, and retirement segments, exceeded analyst expectations and reinforced Aviva’s position as a market leader.
Overview and Key Drivers
The Aviva half-year results reflect the strength of its diversified business model. Insurance, wealth, and retirement all contributed to a 9% sales increase, reaching £21.5 billion. Wealth net flows rose by 16% to £5.8 billion, while assets under management climbed 6% to £209 billion.
Health insurance premiums also surged 14% to £1 billion, supported by strong demand and efficient operations. The combined operating ratio remained in the low 90s, a clear sign of disciplined cost management.
For more background on Aviva’s business model, see Aviva’s corporate strategy page.
Aviva Half-Year Results: General Insurance Performance
General insurance was another standout in the Aviva half-year results. Premiums increased 7% to £6.29 billion.
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UK and Ireland delivered 9% growth to £4.14 billion
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Canada posted 4% growth to £2.15 billion
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Personal lines in the UK rose 3%
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Commercial lines surged 15%
The undiscounted combined ratio improved to 94.6%, signalling better underwriting profitability. Aviva maintained pricing discipline despite competitive pressures.
Aviva Half-Year Results: Segment Challenges
While overall performance was strong, the Aviva half-year results also revealed some challenges:
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Protection sales fell 16%, partly due to post-acquisition changes following the AIG deal
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Retirement sales dipped 3% to £2.95 billion
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Bulk purchase annuities dropped from £2.3 billion to £2 billion
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Value of new business fell 10% to £94 million
Despite this, individual annuities rose 29%, showing resilience in certain retirement products.
Aviva Half-Year Results: Capital and Returns
The Aviva half-year results show a robust capital position, with a Solvency II cover ratio of 206%, up from 203% at year-end.
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Operating free surplus generation grew 20% to £909 million
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Operating capital generation surged 33% to £957 million
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Return on equity under Solvency II reached 16.7%, while IFRS return hit 20.6%
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Cash remittances rose 7% to £1.02 billion
These figures underscore Aviva’s financial resilience and ability to reward shareholders.
Direct Line Acquisition Impact
A key highlight of the Aviva half-year results is the £3.7 billion acquisition of Direct Line, completed on July 1, 2025. While its results are not yet included in this report, the deal is expected to add significant value:
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Projected 10% boost to earnings per share
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Strengthened presence in UK personal lines
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Motor premiums at £1.34 billion, non-motor at £500 million
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Net insurance margin improved to 9.4%
More details will be shared during Aviva’s November update. For further information, see Direct Line’s acquisition announcement.
CEO Insights
CEO Amanda Blanc described the Aviva half-year results as “outstanding,” highlighting the benefits of a diversified, capital-light business model. Capital-light areas now contribute 66% of profits, with potential to exceed 70% post-Direct Line integration.
She reaffirmed Aviva’s 2026 goal of achieving £2 billion in operating profit, citing strong general insurance performance, targeted growth in wealth and health, and disciplined cost control.
Aviva Half-Year Results: Market Outlook
Looking ahead, the Aviva half-year results position the company well for continued growth. While general insurance may face some rate softening, wealth and health divisions are expected to expand. The pension buy-out market may slow compared to last year’s record £45 billion in deals, but Aviva still plans to capture high-value opportunities.
The Direct Line acquisition is a key enabler, adding scale and synergies to Aviva’s operations. Analysts have generally viewed the deal positively, forecasting stronger market positioning.
Aviva Half-Year Results: Shareholder Benefits
The Aviva half-year results also brought good news for investors. The interim dividend has been increased by 10% to 13.1 pence per share, reflecting the company’s confidence in sustained earnings growth.
Aviva maintains a commitment to mid-single-digit annual dividend growth, aligning shareholder returns with long-term strategy.
Aviva Half-Year Results Indicate Strong Momentum
The Aviva half-year results demonstrate a resilient and growth-focused business, able to deliver solid profits despite economic headwinds. With a strong balance sheet, expanding capital-light segments, and strategic acquisitions like Direct Line, Aviva is on track to meet its ambitious 2026 targets.
Investors and customers alike will be watching the integration progress closely. November’s update will provide further clarity on synergy gains and growth prospects.
