Aviva (AV) Q4 2025 earnings summary

Executive summary

• Achieved 2026 financial targets a year early, raising ambitions with new 3-year targets for profit, capital generation, and cash remittances.

• Operating profit up 25% to £2.2bn, EPS at 56p, and return on equity at 17.5%.

• Over 25 million customers globally, with 7 million in the UK holding multiple products.

• Integration of Direct Line completed, delivering immediate financial and operational synergies.

• Announced a final dividend of 26.2p per share, up 10% year-on-year, and resumed a £350m share buyback.

Financial highlights

• Operating profit: £2,203m (+25% year-over-year), EPS 56p (+17%), and return on equity 17.5%.

• Cash remittances up 4% to £2.1bn, excluding Direct Line funding.

• Own funds generation: £2,317m (+40%).

• Solvency II cover ratio at 180%, supported by £2.3bn Own Funds Generation.

• Dividend per share: 39.3p, up 10%.

Outlook and guidance

• Targeting 11% operating EPS CAGR from 2025 to 2028, aiming for ~75p EPS by 2028.

• New 3-year targets: >£7bn cash remittances (2026–2028), >20% IFRS ROE by 2028.

• Combined ratio expected below 94% in UK & Ireland and approaching 94% in Canada for 2026.

• On track for £280m wealth profit ambition by 2027.

• Continued investment in AI, digital, and customer engagement to drive long-term growth.