Aviva raises targets as Direct Line synergies accelerate

Aviva raised its ambitions after posting another strong quarter, now expecting to hit its 2026 financial targets a year early. The insurer is guiding to ~£2.2 billion in operating profit for 2025, including £150 million from Direct Line, and plans to resume higher share buybacks next year.

The Direct Line integration is ahead of schedule: Aviva has already completed the brand’s £100 million cost-cutting program and doubled its cost-synergy target to £225 million, with more than £500 million in capital synergies expected by the end of 2026, subject to regulatory approval.

General insurance premiums climbed 12% to £10 billion, led by the UK and Ireland — up 17% to £6.7 billion — boosted by Direct Line and partnership growth.

Canada grew 3% in constant currency, supported by rate actions in personal lines. Group COR improved to 94.4% (90.4% discounted).

Wealth brought in £8.3 billion in net flows, pushing assets to £224 billion. Protection and health sales fell 5% as Aviva consolidates AIG’s acquired products, though margins improved. Retirement sales reached £5.3 billion, with strong annuity and equity-release demand despite lower BPA volumes.

“The outlook for Aviva has never been better. The advantages of our diversified business, 25 million strong customer base, and majority capital-light earnings, mean we expect to deliver more and more for our shareholders and customers. And so today we are also setting new financial targets, raising our ambitions yet again, and reflecting the strength of our confidence in the continuing growth potential of Aviva.” – CEO Amanda Blanc.