Aviva’s H1 profit falls by 49%

UK insurer Aviva reported a 49% decline in profit to £418m for the first half of 2026 (H1 2026), while basic earnings per share fell by 44% to 12.2p.

The company said this came as operating profit increased by 24% to £1.32bn, which it attributed to continued progress on its Direct Line integration and growth across its core business lines.

Operating earnings per share rose by 10% to 31.8p, while return on equity (ROE) increased to 20.3% from 18.2% in the same period last year.

General Insurance premiums were up by 29% to £8.09bn, while the group’s undiscounted combined operating ratio improved to 93.3% from 94.6% a year earlier.

Within that division, UK and Ireland (UK&I) General Insurance premiums increased by 42% to £5.91bn, reflecting the Direct Line acquisition and growth in the intermediated business, with an undiscounted combined operating ratio (COR) of 93.4%.

Canada General Insurance premiums rose by 3% to £2.18bn, with an undiscounted COR of 93%.

In Wealth, net flows increased by 32% to £7.6bn, supported by the onboarding of initial transfers from the Mercer Master Trust and further growth in the group’s Platform business.

Assets under management in Wealth climbed by 25% to £261bn.

On the Direct Line integration, Aviva said it had completed the transfer of all Direct Line staff to the group and moved nearly £5bn of assets to Aviva Investors.

It said £100m in run-rate cost synergies had been achieved so far, against a target of £225m, and that it remained on track to deliver more than £350m in capital synergies by year-end.

Aviva also said it was on course to meet its three-year group targets, including an 11% compound annual growth rate in operating earnings per share for 2025–28, ROE above 20% by 2028 and cumulative cash remittances of more than £7bn for 2026–28.

The insurer added that it expected its solvency cover ratio to reach the high-180s by the end of 2026, subject to market conditions, and reaffirmed its 2026 guidance for a UK&I General Insurance COR below 94% and a Canada COR approaching 94%.

Aviva group CEO Amanda Blanc said: “Aviva’s results in the first half of 2026 were very strong, with operating profit up 24% to £1.3bn. We have now achieved six consecutive years of excellent financial performance, with much more to come.

“We also continue to deliver for our shareholders and today we have increased the interim dividend by 7% to 14p per share.”