Aviva PLC (LSE:AV.) reported a 24% increase in first-half operating profit to £1.33 billion as its insurance businesses strengthened and the integration of Direct Line progressed, prompting the insurer to lift its interim dividend by 7%.
Operating earnings per share rose 10% to 31.8p, while IFRS return on equity increased to 20.3% from 18.2%. Cash remittances climbed 47% to £1.50 billion and the interim dividend was raised to 14.0p per share from 13.1p.
IFRS profit for the period fell to £418 million from £819 million, reflecting negative investment variances as well as integration, restructuring and other non-operating costs.
General Insurance drives growth
General Insurance operating profit increased to £905 million from £648 million, with UK and Ireland operating profit rising 50% to £643 million.
UK and Ireland gross written premiums increased 42% on a constant currency basis to £5.91 billion, supported by the Direct Line acquisition. UK personal lines premiums almost doubled to £3.68 billion, while the undiscounted combined operating ratio improved to 93.4%.
Wealth also recorded stronger momentum, with net flows up 32% to £7.6 billion and assets under management reaching £261 billion.
Direct Line integration advances
Aviva said all Direct Line employees have transferred to the group, while nearly £5 billion of assets have moved to Aviva Investors.
The insurer has delivered £100 million of annualised cost synergies towards its £225 million target and remains on track for more than £350 million of capital synergies by year-end.
Aviva expects 2026 operating EPS growth to be broadly in line with its 11% target rate and remains on track for its 2028 targets, including IFRS return on equity above 20% and cumulative cash remittances of more than £7 billion between 2026 and 2028.
