Aviva PLC (LSE:AV.) reported a strong start to the year, with growth across its business lines that reinforced confidence in achieving its targets for the full year.
Chief executive Amanda Blanc said the acquisition of Direct Line is "firmly on track", though the UK Competition and Markets Authority launched an investigation yesterday.
With Direct Line shareholders having voted in favour of the transaction, Blanc said she expects to complete the deal in the middle of the year.
The FTSE 100 insurance giant posted a 9% increase in general insurance premiums to £2.9 billion, driven by strong gains in both personal and commercial lines, including benefits from its acquisition of Lloyd’s insurer Probitas.
In the UK and Ireland, general insurance premiums surged 12% to £2.0 billion, supported by an 8% rise in personal lines and 15% growth in commercial lines.
The Wealth business recorded £2.3 billion in net flows, equivalent to 5% of opening assets under management, though this was impacted by the outflow of assets from a large workplace scheme that switched providers. There was a partial offset by growth from the platform business.
Retirement sales climbed 4% to £1.8 billion, with individual annuities swelling 32% to £0.4 billion, while protection and health sales climbed 19% to £126 million, reflecting strong demand from both consumers and employers.
Solvency II cover ratio was down from 203% at the end of 2024 to 201%, with the decline primarily due to the impact of the final dividend.
Liquidity stood at £1.8 billion in April, up from £1.7 billion in January.
"Our diversified business model has once again delivered strong and resilient performance across all areas,” said Blanc. "We remain confident in achieving our group targets, supported by our strong balance sheet and customer-focused strategy."
If the Direct Line deal is completed as planned, Blanc expects to "reframe" the group targets, with the strategy to move Aviva to a more "capital-light" model already expected to move the group from 56% of operating profit to beyond 70% as synergies and profits are delivered.