Aviva Stock Earnings Reports

Aviva reported a strong 2025, with operating profit up 25% to GBP 2.2bn, EPS of 56p and IFRS ROE of 17.5%. The results include six months of Direct Line and management says the group has already met its 2026 targets a year early and has raised multi‑year ambitions. Key capital actions: a final dividend of 26.2p (total 39.3p, +10% YoY) and resumption of a GBP 350m share buyback. Solvency sits around 180% with continued own funds generation and explicit plans to deliver at least GBP 350m (c.7 points) of Direct Line solvency synergies by year‑end and ~20 points of operating capital generation in 2027. Business highlights: General Insurance premiums +18% (U.K. combined ratio ~93.9% on a U.K. basis; Group COR guidance for 2026: better than 94%); Wealth AUM >GBP 230bn with record net flows (~GBP 11bn) and on track to GBP 280m Wealth profit ambition by 2027; Retirement wrote GBP 4.6bn of bulk annuities at attractive mid‑teens IRRs; Protection & Health margins improving and integration of AIG protection nearing completion. Direct Line integration is progressing: pricing models implemented, asset transfers to Aviva Investors, early cost savings delivered (first GBP 50m H2 2025) and GBP 225m total cost‑saving ambition confirmed, with c.GBP 50m p.a. incremental claims investment planned. Management emphasises AI as a strategic enabler (partnership with OpenAI), citing tangible early benefits (medical underwriting time halved; call wrap time down ~20% in Direct Wealth) and plans to pilot an in‑house AI claims agent later in the year. Management reiterates discipline on underwriting, focus on margins over volume, continued investment in technology and data, and confidence in progressive earnings growth (new 3‑year targets).