Aviva PLC's (LSE:AV..) first-quarter update landed broadly in line with expectations, with solid numbers but little to stir the market.
The shares were little moved on Thursday, reflecting a feeling that, while reassuring, the update lacked any real positive surprises.
Group revenue rose 9% year on year to £2.9 billion, helped by strength in its retirement business.
Retail annuity sales jumped 32%, though bulk annuities were flat, with more than 25 smaller schemes making up the total.
General insurance performed better than feared, with a combined ratio of 96.6%, a key profitability measure, holding up well despite heavy weather-related claims in Canada and Ireland.
The insurer’s capital position remains strong, with a Solvency II ratio of 201%, and management reaffirmed its 2026 earnings and cash targets.
Panmure Liberum called the update “decent” and sees no disruption to the Direct Line acquisition timeline, despite a routine referral to the UK competition regulator.
The shares continue to trade on a modest 10 times expected 2026 earnings, with a dividend yield of 7%. For now, though, the market is waiting to see whether the Direct Line deal can deliver the scale and margin gains Aviva needs to re-rate.
The stock rose 1.6p to 573.6p.