London · Delayed Price · Currency is GBP · Price in GBX Aviva Earnings Call Transcripts
Fiscal Year 2025
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Delivered strong 2025 results with 25% operating profit growth, early achievement of 2026 targets, and raised ambitions for the next three years. Integration of Direct Line is progressing well, with significant cost synergies and a focus on capital-light, AI-driven growth.
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Q3 saw double-digit profit growth, improved combined ratios, and strong capital generation. New three-year targets include 11% EPS CAGR, >20% ROE by 2028, and over GBP 7 billion in cash remittances, with Direct Line integration driving higher cost and capital synergies.
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First-half 2025 saw strong growth in profit, capital, and customer metrics, with operating profit up 22% and a 10% dividend increase. The Direct Line acquisition is progressing well, supporting further growth and capital synergies.
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Premiums and profits grew across all segments, with strong capital and liquidity positions maintained. Weather-related claims impacted Ireland and Canada, but underlying performance and outlook remain robust, supported by disciplined pricing and strategic acquisitions.
Fiscal Year 2024
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Full-year 2024 saw 20% operating profit growth, strong capital position, and robust segment performance across insurance, wealth, and retirement. The proposed Direct Line acquisition is set to accelerate growth and enhance shareholder returns, with continued focus on efficiency and digital innovation.
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A recommended GBP 3.7 billion acquisition of Direct Line Group is set to create a UK personal lines leader, delivering at least GBP 225 million in cost synergies and around 10% EPS accretion. The deal is expected to enhance shareholder returns, with a mid-single digit DPS uplift and resumed buybacks in 2026.
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Strong double-digit growth in General Insurance, Wealth, and Retirement, with improved COR and robust capital position. CAT losses in Canada were significant but managed within expectations, and M&A integrations are progressing well. Bulk annuity and Wealth flows remain strong.
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Customer numbers and engagement are rising, driven by digital innovation, cross-selling, and a focus on multi-policy holders. Enhanced digital capabilities, including the new MyAviva app and data-driven marketing, support growth and efficiency, while product innovation and operational improvements underpin confidence in meeting financial targets.
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Strong H1 results with 14% operating profit growth, robust capital position, and double-digit gains in GI, wealth, and retirement. Capital-light business mix is accelerating, with continued investment in digital and M&A. Dividend up 7% and share buybacks ongoing.