Aviva (AV) H2 2024 earnings summary

Executive summary

• Delivered strong full-year 2024 results with 20% operating profit growth to £1.8 billion and consistent year-on-year earnings, extending a four-and-a-half-year track record.

• Cash remittances rose to £2 billion, up 5% year-over-year, and total dividends per share increased 7% to 35.7p.

• Strategic progress includes the proposed £3.7 billion acquisition of Direct Line Group (DLG), expected to deliver £125 million in annual cost synergies and accelerate growth.

• Customer base grew by 1.3 million net new customers, with 40% of new sales to existing customers.

• Enhanced shareholder returns with cumulative capital returns and dividends reaching £10 billion since 2020.

Financial highlights

• General Insurance premiums grew 14% to £12.2 billion; UK & Ireland GI premiums up 16% to £7.7 billion; Canada GI premiums up 11% to £4.5 billion.

• Operating profit reached £1,767 million (+20% YoY); underlying Solvency II OFG was £1,503 million (+18% YoY).

• Cash remittances increased to £2 billion; return on equity at 13.6% (Solvency II basis); Solvency II cover ratio at 203%; leverage ratio at 29%.

• Wealth assets under management reached nearly £200 billion; net flows up 69% on adviser platform and 23% overall.

• Retirement segment wrote £7.8 billion in bulk purchase annuities (BPA), with new business margin at 3.2% and total retirement sales up 33% to £9.4 billion.

Outlook and guidance

• On track to achieve £2 billion operating profit and £1.8 billion OFG by 2026, with more than £5.8 billion in cash remittances from 2024 to 2026.

• Dividend per share to grow by mid-single digits in 2025, with further increases and buybacks expected post-DLG acquisition.

• Shifting earnings mix to over 70% capital-light by 2026, enhancing return on equity and shareholder distributions.

• BPA volumes expected to remain at £15–20 billion over the next three years.

• Expecting continued improvement in combined ratio, subject to normal weather conditions.