Aviva’s profit soars ahead of merger with Direct Line
Aviva posted a profit jump for the first half of the year after strong growth across its wealth and insurance divisions.
The company’s operating profit climbed 22 per cent to just north of £1bn – topping the £875m netted in the first half of 2024.
This comes after Aviva completed its £3.7bn takeover of rival Direct Line on July 1 after receiving the green light from the Competitions and Market Authority (CMA).
The CMA’s decision came after an internal review, which assessed whether the merger could lead to “a substantial lessening of competition”. The watchdog found the takeover would not hinder the UK insurance market.
Aviva said it integration is “progressing quickly” and it plans to provide more details on the Direct Line integration and its impact on Group targets at an ‘In Focus’ event in November.
The insurer said 66 per cent of its operating profit comes from capital-light businesses, which are divisions that require less capital to run and grow. It expects the acquisition to increase the figure to over 70 per cent.
Shares in Aviva were up over four per cent as markets opened to 686.00. The stock is up nearly 45 per cent for the year-to-date.
Adam Vettese, market analyst at eToro, said: “These results reaffirm Aviva’s status as a well capitalised, diversified insurer offering an attractive yield supported by a clear strategy and strong execution.
“Shares have been flying this year as a result. While integration risks and climate related claims are worth looking out for, the combination of balance sheet strength, high quality earnings growth and shareholder focus keeps Aviva an appealing income play despite the already stellar performance of shares this year.”
Aviva’s wealth and insurance takings swell
General insurance premiums grew by seven per cent in the half of 2025 to £6.2bn, whilst operating profit in the sector was up 29 per cent.
Its wealth arm topped £200bn assets under management with net flows jumping 16 per cent to £5.8bn. Aviva said the division was on track to achieve £280m in operating profit by 2027.
Elswhere, in-force premiums in the health business increased 14 per cent to £1bn with the business “on track” to reach its 2026 operating profit target of £100m.
Aviva recorded 5.5m customers with two or more policies and expects the addition of Direct Line to take total customer count to 21m.
Amanda Blanc, group chief executive, said: “Over the past five years we’ve transformed the performance and prospects of Aviva.
“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.”