Aviva (AV) H1 2024 earnings summary

Executive summary

• Operating profit rose 14% to £875m, with strong performance across all business units and double-digit growth in cash remittances and capital generation.

• IFRS profit for the period increased 58% to £654m, driven by General Insurance and Retirement.

• Insurance, Wealth & Retirement (IWR) sales up 12% to £19.7bn; General Insurance premiums up 15% to £6.0bn.

• Interim dividend increased 7% to 11.9p per share; £300m share buyback completed.

• Strategic acquisitions, including AIG UK Protection, Probitas, and Optiom, are accelerating growth and market leadership.

Financial highlights

• Operating profit up 14% to £875m; IFRS profit up 58% to £654m.

• Solvency II operating own funds generation up 10% to £758m; operating capital generation up 17% to £722m.

• Cash remittances up 16% to £959m; return on equity at 12.4%.

• General Insurance premiums up 15% to £6.0bn; Wealth net flows up 16% to £5.0bn; AUM at £186bn.

• Solvency II cover ratio at 205%; debt leverage ratio at 29% (pro forma 28.8% post Tier 2 redemption).

Outlook and guidance

• On track to deliver 2026 targets: £2bn operating profit, £1.8bn Solvency II OFG, and >£5.8bn cash remittances (2024–26).

• Capital-light business mix targeted to reach 70% by 2026, supporting higher returns.

• Expect continued growth in Wealth and Health, moderate growth in Protection; dividend guidance for mid-single digit growth in cash cost unchanged.

• On track to achieve £15–20bn of BPA volumes over three years, with £7–8bn targeted for 2024.

• No new BPA volume target set beyond 2024; focus remains on capital strain management.