Key facts
- Aviva's operating profit for the first half of 2026 rose 24% to £1.3 billion.
- The profit increase was driven by the acquisition of Direct Line in July 2025.
- General insurance premiums grew 29% to £8.1 billion.
- Aviva is implementing AI across its business, including medical underwriting and customer service.
- The company aims to have 75% of its earnings be capital-light by 2028.
FTSE 100 insurance giant Aviva reported a 24% increase in operating profit for the first half of 2026, reaching £1.3 billion, up from £1.7 billion a year earlier. This growth was primarily driven by the company's "strong progress" following its £3.6 billion acquisition of Direct Line in July 2025.
Aviva's general insurance premiums saw a 29% rise to £8.1 billion, with UK and Ireland premiums climbing 42% to £5.9 billion. The insurer's wealth management arm also experienced significant growth, up 32% to £7.6 billion, bolstered by a new pension scheme and strong sales via its investment platform.
Chief executive Amanda Blanc stated that the integration of Direct Line is progressing well, with improvements in profitability and customer service. She expressed confidence that Aviva will meet its three-year financial targets by 2028, expecting 75% of earnings to be capital-light by then.
Richard Hunter, head of markets at Interactive Investor, commented that the results reinforce Aviva's leading positions in the home and car insurance markets. He noted that car insurance premiums have risen due to higher vehicle valuations and the cost of repairing complex vehicles.
Aviva is also advancing its use of technology, particularly AI, across its operations. The company is leveraging customer data to train its AI models, which it views as a competitive advantage. AI is already showing benefits in its medical underwriting division, and a generative AI tool for summarizing medical reports has been introduced. Future plans include launching an AI virtual assistant and AI-enabled claims agents.