Aviva has reported a substantial profit surge for the first half of the year following robust performance across its wealth and insurance operations.
The firm’s operating profit soared 22 per cent to just over £1bn – surpassing the £875m achieved in the first half of 2024, as reported by City AM.
This follows Aviva’s completion of its £3.7bn acquisition of competitor Direct Line on July 1 after securing approval from the Competitions and Market Authority (CMA).
The CMA’s approval came following an internal assessment examining whether the merger might result in “a substantial lessening of competition”. The regulator concluded the deal would not impair the UK insurance sector.
Aviva confirmed its integration is “progressing quickly” and plans to reveal further details on the Direct Line merger and its effect on Group objectives at an ‘In Focus’ event in November.
The insurer noted that 66 per cent of its operating profit derives from capital-light businesses, which are units requiring less capital to operate and expand. It anticipates the acquisition will push this figure beyond 70 per cent.
Aviva shares climbed more than four per cent at market opening to 686.00. The stock has risen nearly 45 per cent year-to-date.
Adam Vettese, market analyst at eToro, commented: “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 soaring this year as a result. While integration risks and climate-related claims are worth monitoring, the combination of balance sheet strength, high-quality earnings growth and shareholder focus keeps Aviva an attractive income play despite the already impressive performance of shares this year.”
Aviva’s wealth and insurance takings swell
General insurance premiums rose by seven per cent in the first half of 2025 to £6.2bn, while operating profit in the sector increased by 29 per cent.
Its wealth division surpassed £200bn assets under management with net flows leaping 16 per cent to £5.8bn. Aviva stated that the division is on course to achieve £280m in operating profit by 2027.
Elsewhere, in-force premiums in the health business grew 14 per cent to £1bn, with the business “on track” to meet its 2026 operating profit target of £100m.
Aviva reported 5.5m customers with two or more policies and anticipates the addition of Direct Line to increase total customer count to 21m.
Amanda Blanc, group chief executive, commented: “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.”
