Aviva (AV) H1 2025 earnings summary

Executive summary

• Delivered strong first-half 2025 results, with operating profit up 22% year-over-year to £1,068m and continued profitable growth across all business units, including 66% from capital-light businesses.

• Completed Direct Line acquisition on 1 July 2025, creating a UK market leader with over 21 million customers; integration progressing well with material cost and capital synergies expected.

• Strategic focus on growth, customer-centricity, efficiency, sustainability, and leveraging technology and AI continues to drive performance.

• Enhanced shareholder returns with a 10% increase in interim dividend per share to 13.1p and guidance for further buybacks in 2026.

• IFRS profit for the period increased 25% to £819m compared to the same period last year.

Financial highlights

• Operating profit up 22% to £1,068m; operating EPS up 25% to 29.0p.

• Operating capital generation up 33% to £957m; own funds generation up 20% to £909m; cash remittances up 7% to £1,022m.

• Solvency II cover ratio at 206%, up from 203% at FY24; SII debt leverage at 32.3%.

• Interim dividend per share increased 10% to 13.1p.

• General Insurance premiums up 7% to £6,290m; undiscounted COR improved to 94.6%.

Outlook and guidance

• Confident in delivering 2026 targets: £2bn operating profit, £1.8bn SII OFG, and >£5.8bn cash remittances (2024–2026).

• Direct Line's impact on group targets to be detailed in November; buybacks expected to resume in 2026, reflecting higher share count.

• Expect further growth in Health and Wealth, moderation in Protection sales decline, and BPA volumes of £15–20bn over 2025–2027.

• Direct Line integration to accelerate capital-light profit mix beyond 70%.

• Continued focus on pricing discipline in General Insurance amid expected rate softening.