British insurer Aviva posts 22% jump in first-half operating profit

British insurer Aviva posted exceptional first-half results, reporting a 22 percent increase in operating profit to £1,068 million while announcing dividend growth and strategic progress following the completion of its Direct Line acquisition. The performance demonstrated consistent delivery across all business segments despite challenging market conditions.

Chief Executive Amanda Blanc described the performance as “outstanding,” highlighting how the company has pushed forward with strategic initiatives while maintaining operational excellence. Operating profit grew from £875 million in the first half of 2024, with the company benefiting from strong performance across its diversified business portfolio.

The insurance giant raised its interim dividend by 10 percent to 13.1 pence per share, reflecting confidence in future cash generation and the company’s commitment to returning value to shareholders. This increase builds on the company’s track record of progressive dividend policy over recent years.

Aviva completed the acquisition of Direct Line at the beginning of July, just six months after making its recommended offer. The integration is proceeding at pace, with the combined business now serving over 21 million customers, representing approximately 4 in 10 adults across the UK.

UK General Insurance premiums increased 9 percent to £4,141 million, with an undiscounted combined operating ratio (COR) of 94.5 percent, improving from 95.8 percent in the prior year. UK personal lines premiums grew 3 percent, supported by growth in intermediated channels including a travel partnership with Nationwide.

The company’s Wealth business demonstrated strong momentum with net flows of £5.8 billion, up 16 percent from the prior year, representing 6 percent of opening Assets Under Management. This growth was driven by increasing regular contributions in Workplace pensions and continued momentum in Platform business.

Health operations saw 14 percent growth in in-force premiums, reaching £1.0 billion, as more individuals and employers recognised the benefits of private medical insurance. The segment maintained a combined operating ratio in the low-90s, reflecting disciplined underwriting practices.

Assets Under Management grew 6 percent to £209 billion compared to £198 billion at the end of 2024, demonstrating the company’s ability to attract and retain customer funds despite market volatility. The growth reflects both net inflows and positive market movements.

Solvency II return on equity reached 16.7 percent compared to 12.4 percent in the prior year, while IFRS return on equity improved to 20.6 percent from 14.8 percent. These metrics reflect the company’s efficient capital management and strong operational performance.

The company maintained a strong balance sheet with a Solvency II shareholder cover ratio of 206 percent and centre liquidity of £2.1 billion. Cash remittances increased 7 percent to £1,022 million, supporting the company’s ability to fund growth and shareholder returns.