Aviva Posts 25% Profit Surge, Resumes Buyback

LONDON, 5 March – British insurer Aviva (AV.L) reported a robust 25% rise in its annual profit on Thursday, signalling a strong recovery and growth across its core insurance and wealth management operations. The company also announced the resumption of its share buyback programme, reflecting renewed confidence following its high-profile acquisition of rival Direct Line.

For the full year 2025, Aviva’s operating profit reached £2.2 billion ($2.9 billion), up from £1.8 billion the previous year. This result broadly met analysts’ expectations, highlighting the combined benefits of its merger with Direct Line and steady performance across its business segments.

The insurer, which provides car, home, and life insurance in the United Kingdom, Ireland, and Canada, declared a final dividend of 26.2 pence per share and a £350 million share buyback, marking the first repurchase initiative since completing the Direct Line acquisition.

Growth was particularly notable in its general insurance segment, where premiums rose 18% to £14.1 billion, underpinned by strong demand in motor and home policies. The wealth management division also performed well, reporting net inflows of £10.9 billion, an increase of 6% over the previous year, reflecting rising customer engagement and confidence in Aviva’s investment products.

Aviva reiterated its long-term financial targets set in November, aiming for an 11% annual growth in earnings per share through 2028, and signalling plans to nearly double cost savings from the Direct Line combination. The company continues to focus on operational efficiency, digital transformation, and expanding its footprint in key markets.

The acquisition of Direct Line last year, valued at £3.7 billion, was the largest deal of CEO Amanda Blanc’s tenure. Blanc has emphasised that the merger strengthens Aviva’s market position, improves profitability, and enhances shareholder returns. Analysts have largely welcomed the integration, noting that it provides Aviva with greater scale, diversification, and pricing power in the competitive insurance sector.

Key Financial Highlights – Aviva 2025

With the merger fully integrated and both insurance and wealth businesses performing strongly, Aviva’s leadership remains confident in achieving sustainable growth, delivering enhanced shareholder value, and maintaining a leading position in the UK and international markets.