Key Highlights
- Operating profit for the first half increased 24% to reach £1.33 billion, surpassing analyst expectations of £1.26 billion
- General insurance gross written premiums soared 29% to £8.1 billion following the Direct Line acquisition
- Net inflows in wealth management surged 32% to £7.6 billion
- Cash remittances climbed 47% to £1.5 billion; company confirms three-year strategic targets
- Interim dividend increased 7% to 14 pence per share
Aviva delivered first-half operating profit of £1.33 billion, marking a 24% increase from the prior year’s £1.07 billion. The performance exceeded analyst consensus estimates of £1.26 billion. Shares traded 0.84% higher at 719.60p in response to the announcement.
Operating earnings per share increased 10% to 31.8p. This progression maintains the company’s trajectory toward achieving its 11% compound annual growth objective through 2028.
The £3.7 billion Direct Line takeover proved instrumental in driving results. General insurance gross written premiums expanded 29% to £8.1 billion, exceeding the £7.8 billion analyst consensus.
Chief Executive Amanda Blanc highlighted the company’s rapid enhancement of Direct Line’s profitability, expansion of price comparison website sales, and preservation of customer service quality.
The integration has seen all Direct Line staff successfully transferred. Close to £5 billion in assets have been migrated to Aviva Investors.
The insurer has achieved £100 million in run-rate cost synergies, progressing toward a £225 million objective. Management confirms the company remains on course to realize over £350 million in capital synergies before year-end.
Wealth Division and Cash Flow Performance
The wealth management segment posted net inflows of £7.6 billion, representing a 32% increase. This strong performance complemented the insurance operations and contributed significantly to overall results.
Cash remittances advanced 47% to £1.5 billion. The company has set a target of more than £7 billion in cumulative remittances spanning 2026 through 2028.
The Solvency II shareholder cover ratio registered at 176%, positioned near the upper end of its operational range. Management anticipates this metric will reach the high 180s by year-end, dependent on market dynamics.
IFRS return on equity advanced to 20.3% from 18.2%, achieving the company’s threshold of above 20%.
Shareholder Returns and Forward Guidance
The interim dividend was raised 7% to 14 pence per share.
Management reaffirmed its three-year strategic objectives: 11% operating EPS growth, IFRS return on equity exceeding 20% by 2028, and cumulative cash remittances surpassing £7 billion.
The company now projects 2026 operating EPS growth to align broadly with its 11% target.
Approximately £0.8 billion in additional cash remittances are anticipated during the second half of the year.
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