Aviva (AV) Q1 2025 TU earnings summary

Executive summary

• Achieved strong, profitable growth in Q1 2025 across all business lines, with continued momentum in capital-light strategy and diversified performance in General Insurance, Wealth, Retirement, and Protection & Health.

• General Insurance premiums rose 9% year-over-year to £2.9bn, with robust performance in both personal and commercial lines, and UK & Ireland up 12%, Canada up 5% at constant currency.

• Health insurance sales increased 19% to £126m, and wealth business net flows reached £2.3bn, up 52% in the platform segment.

• Strategic progress includes Probitas and AIG Protection integrations and the Direct Line Group (DLG) acquisition, which is on track for mid-2025 completion.

• Balance sheet remains strong, supporting confidence in 2025 outlook and group targets.

Financial highlights

• General insurance premiums up 9% across UK, Ireland, and Canada; UK GI premiums exceeded £2bn, with UK personal lines up 6% to £945m and commercial lines up 17% to £905m (including Probitas).

• Ireland GI premiums up 21% to £151m; Canada GI premiums up 5% at constant currency to £904m.

• Protection and health sales up 19% to £126m, with individual annuities volumes up 32%.

• Wealth net flows of £2.3bn (5% of opening AUM); platform net flows up 52% to £1.3bn.

• Retirement volumes up 4% to £1.8bn; BPA volumes £1.3bn across 25 deals.

Outlook and guidance

• Positive outlook for 2025, described as a transformative year with strong balance sheet and profitable growth.

• Confident in achieving 2026 group targets: £2bn operating profit, £1.8bn Solvency II OFG, and >£5.8bn cumulative cash remittances for 2024-26.

• Wealth business expected to deliver £280m operating profit by 2027.

• BPA pipeline remains strong, but 2024 volumes unlikely to be repeated; focus remains on margins and IRRs.

• Direct Line acquisition expected to complete mid-year, with targets to be reframed post-completion.