Key Takeaways:
- Operating profit up 24% to £1.33bn, beating analyst consensus of £1.26bn
- Interim dividend raised 7% to 14.0p; cash remittances up 47% to £1.5bn
- Health division full-year outlook cut to £90m on slowing market growth
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Aviva operating profit rises 24% to £1.33bn on Direct Line gains
Aviva reported first-half operating profit of £1.33bn, up 24% from a year earlier and ahead of the £1.26bn analysts expected.
"Aviva's results in the first half of 2026 were very strong, with operating profit up 24% to £1.3 billion," Group Chief Executive Officer Amanda Blanc said. "We are making very good progress with the integration of Direct Line."
General insurance gross written premiums climbed 29% to £8.1bn, while wealth-management net inflows rose 32% to £7.6bn. The insurer raised its interim dividend 7% to 14.0p per share, and cash remittances reached £1.5bn, up 47% from £1.02bn a year earlier.
The results cement Aviva's position as Britain's largest multiline insurer following its £3.7bn acquisition of Direct Line, completed in July 2025. The company reaffirmed three-year targets of 11% operating EPS CAGR through 2028, return on equity above 20%, and cumulative cash remittances exceeding £7bn from 2026 to 2028.
Operating earnings per share rose 10% to 31.8p, and IFRS return on equity reached 20.3%, up 2.1 percentage points. The Solvency II shareholder cover ratio stood at 176%, down from 180% at the end of 2025. IFRS profit for the period fell 49% to £418m, reflecting acquisition-related impacts.
Aviva lowered its full-year outlook for the health division to £90m operating profit from a prior expectation of £100m, citing slowing market growth in consumer and small and medium enterprise channels. The company said it will continue investing in the business, which it views as an attractive long-term opportunity.
Direct Line integration is progressing ahead of schedule. Aviva has delivered £100m of run-rate cost synergies toward its £225m ambition and expects to complete more than £350m of capital synergies by year-end. Motor policies on price comparison websites grew 7%, and customer service scores remain above 50 on the net promoter scale. The company is on track for a combined operating ratio below 94% in UK and Ireland general insurance and approaching 94% in Canada.
The company now serves 25.3m customers across the UK, Ireland and Canada, up 21% from a year earlier, with 7.2m multi-product holders. Aviva said it is deploying AI across underwriting, claims and customer service, including a virtual assistant and voice-enabled claims agent slated for launch later this year.
The dividend increase and reaffirmed targets show management confidence in sustained earnings growth. Investors will watch the Wealth In Focus session in October for an update on the wealth division's £280m operating profit ambition for 2027.
This article is for informational purposes only and does not constitute investment advice.
[1] Aviva Operating Profit Rises as Insurer Lowers Health Outlook[2] Half year 2026 results announcement[3] Aviva Profit Growth Surges on Direct Line Deal & Wealth Management[4] Aviva Operating Profit Rises as Insurer Lowers Health Outlook - WSJ[5] Aviva’s remarkable revival leaves one big question: What next?
