Aviva PLC (LSE:AV.) said it expects to reach its 2026 financial targets a year early, driven by strong performance across the business and ahead of contributions from its recently acquired Direct Line operations.
The FTSE 100 life insurer also announced new three-year targets, including an 11% compound annual growth rate in operating earnings per share through to 2028, a return on equity exceeding 20% by 2028, and over £7 billion in cumulative cash remittances between 2026 and 2028.
Aviva said it continues to grow its capital-light business and expects this segment to make up over 75% of its business by 2028.
In a trading update for the third quarter of 2025, Aviva reported 12% growth in general insurance premiums to £10 billion.
Cost 'synergies' from the Direct Line acquisition of £100 million have been completed ahead of schedule, with chief executive Amanda Blanc now expecting £225 million by 2028, as well as unlocking at least £500 million of capital synergies.
For 2025, group operating profit is now expected to reach roughly £2.2 billion, including around £150 million from Direct Line.
Blanc said: "We expect to resume share buybacks next year, at a higher level in response to the increased share count."