Aviva (AV) Q4 2025 earnings summary

Executive summary

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

• Operating profit rose 25% to £2.2bn, with double-digit EPS growth and a 17.5% return on equity.

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

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

• Strategic focus on capital-light growth, AI innovation, and leveraging proprietary data.

Financial highlights

• Operating profit up 25% year-over-year to £2.2bn; EPS at 56p; return on equity 17.5%.

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

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

• Final dividend of 26.2p per share, up 10% year-on-year; total DPS 39.3p; resumed £350m share buyback.

• General insurance premiums up 18%; wealth assets over £230bn with record net flows of £11bn.

Outlook and guidance

• New three-year targets: 11% operating EPS CAGR from 2025–2028, aiming for 75p EPS by 2028, >£7bn cash remittances, and >20% IFRS ROE.

• 2026 combined ratio guidance: UK & Ireland below 94%, Canada approaching 94%.

• Continued focus on capital-light businesses, further cost synergies from Direct Line, and AI-driven efficiencies.

• Dividend policy: mid-single-digit increases, supported by strong capital generation.

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