Aviva H1 operating profits up 24pc as Direct Line boosts UK insurance

(Sharecast News) - Insurance firm Aviva posted a strong set of interim results on Friday, with operating profits rising 24% to £1.33bn as the insurer continued to build momentum across its core markets and benefited from the integration of Direct Line. Operating earnings per share increased 10% to 31.8p, while IFRS return on equity improved to 20.3%, up from 18.2% a year earlier. However, IFRS profits for the period fell to £418m from £819m, reflecting negative investment variances linked to hedging and integration costs.

UK and Ireland general insurance delivered a standout performance, with operating profits up 50% to £643m, while Canada general insurance also grew, with operating profits rising to £262m from £218m, supported by pricing actions in personal lines and steady commercial growth.

Gross written premiums rose 43% to £5.91bn, driven by a 98% surge in UK personal lines following the Direct Line acquisition, while underwriting profits increased to £504m, and investment returns climbed 48% to £298m.

Wealth net flows increased 32% to £7.6bn, lifting assets under management to £261bn, while Aviva Investors recorded £1.5bn of net inflows.

The FTSE 100-listed company also said cash remittances had jumped 47% to £1.5bn during the period, and declared an interim dividend of 14p per share - a 7% increase year-on-year.

Looking forward, Aviva said it remained confident in its three‑year targets, including operating EPS growth of 11% per year and cumulative cash remittances of more than £7bn between 2026 and 2028.

As of 0830 BST, Aviva shares were up 0.17% at 714.80p.



Reporting by Iain Gilbert at Sharecast.com

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