- First-quarter general insurance premiums rose 19% to £3.4 billion.
- Group combined operating ratio improved to 94.1% from 96.6% a year earlier.
- Wealth net flows increased 49% to £3.3 billion, showing strong growth in the division.
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Aviva Q1 Premiums Jump 19% as Insurer Backs Full-Year Targets
Aviva PLC (LSE:AV.) reported a 19 percent increase in first-quarter general insurance premiums to £3.4 billion, driven by strong growth in its UK and Ireland personal lines and the integration of assets from Direct Line.
"We have delivered an excellent start to 2026 and are building clear trading momentum," Chief Executive Amanda Blanc said. She noted the integration of the Direct Line business was "on track," with policies sold through price comparison websites nearly doubling since the start of the year.
The FTSE 100 insurer saw its group undiscounted combined operating ratio, a key measure of underwriting profitability, improve to 94.1 percent from 96.6 percent in the prior-year period. A ratio below 100 percent indicates an underwriting profit. The company's wealth division also performed strongly, with net flows swelling 49 percent to £3.3 billion.
Aviva backed its full-year financial targets, including a goal for its UK and Ireland general insurance combined ratio to be below 94 percent. The group’s Solvency II shareholder cover ratio, a measure of its capital strength, fell to 171 percent from 180 percent at the end of 2025, reflecting the impact of dividends and share buybacks.
While UK and Ireland general insurance premiums were bolstered by the Direct Line integration and growth in personal lines, commercial lines premiums fell seven percent amid competitive pricing conditions. In contrast, retirement sales fell to £1.1 billion from £1.8 billion a year earlier as bulk purchase annuity volumes dropped in a competitive market, though individual annuity sales increased 10 percent.
The strong performance in the first quarter suggests Aviva's strategy of diversifying its business is paying off, with the wealth management unit providing a significant growth engine. Investors will watch for continued successful integration of the Direct Line assets to sustain momentum in the general insurance division through the remainder of 2026.
This article is for informational purposes only and does not constitute investment advice.
