Aviva plc reported a 22% year-on-year increase in group operating profit to £1.07 billion for the first half of 2025, up from £875 million in the same period last year. The insurer said 66% of operating profit was now generated from capital-light businesses.
In Canada, general insurance premiums totalled £2.15 billion, with personal lines up 9% on continued pricing actions in property and auto. Commercial lines were 3% lower due to reduced volumes in Global Corporate & Specialty from portfolio management actions aimed at prioritising margin over volume.
Operating profit for the division was £218 million, up 7% year-on-year, supported by an improved underlying result partly offset by adverse weather-related catastrophe events. The undiscounted combined ratio was unchanged at 94.7%, while the discounted COR stood at 91.5%. Solvency II Own Funds Generation was £157 million, and cash remittances rose 17% to £80 million.
The unit's prior year’s results were impacted by a COR of 98.5% in 2024, attributed largely to severe weather events, which increased claims costs in property lines and reinforced the focus on underwriting discipline and portfolio optimisation.
Aviva Canada also saw leadership changes last month, with CFO Nav Dhillon appointed interim CEO following the departure of Tracy Garrad, and taking on a role of CEO effective August 1. In May, John Lally was promoted to chief claims officer.
Solvency II Own Funds Generation as a whole rose 20% to £909 million, while Solvency II Operating Capital Generation grew 33% to £957 million. The Solvency II return on equity reached 16.7%, up from 12.4% a year earlier, and IFRS return on equity increased to 20.6% from 14.8%. Cash remittances rose 7% to £1.02 billion.
Sales in Insurance, Wealth & Retirement climbed 9% to £21.5 billion. General insurance premiums grew 7% to £6.29 billion, with an undiscounted combined operating ratio (COR) of 94.6% and a discounted COR of 90.4%, both improving from the prior year. IFRS profit for the period rose to £819 million from £654 million.
The group’s Solvency II shareholder cover ratio was 206%, compared with 203% at year-end 2024. Liquidity stood at £2.1 billion in July, up from £1.7 billion in January, while the Solvency II debt leverage ratio increased to 32.3% from 28.9%. The interim dividend rose 10% to 13.1p per share.
UK and Ireland general insurance premiums rose 9% to £4.14 billion, with personal lines up 3% on growth in intermediated channels, including a travel partnership with Nationwide. Commercial lines increased 15%, supported by pricing actions, new business, and the Probitas acquisition.
Following the acquisition of Direct Line Group on July 1, Aviva established a new leadership structure for UK and Ireland General Insurance. Jason Storah was appointed CEO of the combined division, while Owen Morris became CEO of personal lines, overseeing integration of the Aviva and Direct Line personal lines portfolios. The company said the changes are intended to streamline governance and align strategy across the enlarged business.
The half-year results exclude Direct Line’s first-half 2025 financials, which showed motor premiums flat at £1.34 billion and non-motor premiums at £500 million under its own accounting policies. Motor policies fell 6% to 3.7 million, and non-motor policies declined 4% to 4.9 million. The net insurance margin improved by 7.6 percentage points to 9.4%. Aviva said integration is progressing and expects the deal to add about 10% to run-rate earnings per share.
Wealth net flows increased 16% to £5.8 billion, equal to 6% of opening assets under management, which rose 6% to £209 billion. Health in-force premiums grew 14% to £1 billion, while protection sales declined 16% following product consolidation linked to the acquisition of AIG’s UK protection business.
Retirement sales fell 3% to £2.95 billion amid subdued bulk purchase annuity (BPA) activity. BPA sales totalled £2 billion during the period, increasing to £3.1 billion by mid-August. Individual annuity sales rose 29%, while value of new business decreased 10% to £94 million.
Aviva Investors originated £1.3 billion of real assets for the group’s annuities arm, with about 65% of Workplace net flows directed into its funds. External net flows remained positive at £300 million.
Chief executive Amanda Blanc (pictured above) said the company had transformed its performance over the past five years.
“Today we are the UK’s leading diversified insurer, with a strong track record of delivery, and an unwavering commitment to our customers. We are very well positioned to accelerate growth in the capital-light areas of wealth, health and general insurance, and deliver more and more for our shareholders,” she said.
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