Aviva grows UK&I GI operating profit by 50% and issues DLG update

Aviva has revealed that its UK and Ireland general insurance operating profit grew by 50% in the first half of 2025 following a 9% growth in premiums.

In a trading update published today (14 August 2025), the insurer revealed that it secured £4,141m in premiums across UK&I in the six months to 30 June 2025, up from £3,809m during the same period last year.

The growth was driven by a 3% year-on-year increase in UK personal lines premiums, which was supported by growth in intermediated markets, including the travel partnership with Nationwide.

Meanwhile, UK commercial lines premiums grew 15% due to pricing actions, new business growth and the Probitas acquisition, which was announced in July 2024.

The improved premiums led to Aviva securing a UK&I general insurance operating profit of £430m in H1 2025, up 50% from £287m from the same period last year.

Aviva also revealed that its combined operating ratio (COR) sat at 94.5% in H1 2025, an improvement from 95.8% in the first half of last year.

Jason Storah, chief executive of UK&I general insurance, said: ”Our UK GWP has increased, driven by a disciplined approach that balances volume with long-term profitability, even in areas where market conditions are changing.

“We’ve grown in personal lines, particularly in intermediated markets. Our customer base is expanding through new partnerships and we’ve launched Refine Home, designed for simple high net worth risks, as part of the Aviva Private Clients product suite. We’re choosing carefully where to grow and our strategy is paying off.

“Commercial lines has delivered double-digit growth. Our SME business continues to perform well, with strong retention and positive rate momentum. This continued trading performance demonstrates the strength and depth of our broker partnerships.”

DLG update

Ahead of the results being announced, Aviva completed its acquisition of Direct Line Group (DLG). Due to the deal completing after the period to which the interim results announcement applies, DLG’s H1 2025 numbers are not consolidated in Aviva’s results.

However, Aviva did reveal that using DLG’s accounting policies as the basis of preparation with no adjustments to align to existing Aviva policies, motor and non-motor premiums were flat at £1,343m and £500m respectively. Motor policies were 6% lower at 3.7 million and non-motor policies were 4% lower at 4.9 million.

Meanwhile, net insurance margin, DLG’s measure of underwriting profitability, increased 7.6pp to 9.4%.

Aviva added that integration was “well underway” and that the acquisition will add “further capital-light operating profits with c.10% run-rate EPS accretion”.

In her results statement, Aviva chief executive Amanda Blanc said: “We completed the acquisition of Direct Line at the beginning of July, just six months after our recommended offer, and integration is well underway.

“The combined business is a UK market leader with over 21 million customers, or 4 in 10 adults, and we are confident the deal will contribute significantly to Aviva’s future growth.”

Group performance

Meanwhile, Aviva also revealed that, at group level, group operating profit rose 22% to £1,068m from £875m in H1 2024.

And general insurance premiums increased by 7% to £6,290m from £6,005m year-on-year.

“Aviva’s performance in the first half of 2025 was outstanding, growing operating profit by 22% and extending our track record of delivery,” Blanc said.

“Another set of high-quality results, combined with excellent strategic progress, are further evidence of how we are pushing Aviva forward.

“This excellent performance allows us to achieve even more for our customers and our shareholders and today we are increasing the interim dividend to 13.1 pence per share.

“Over the past five years we’ve transformed the performance and prospects of Aviva. Today we are the UK’s leading diversified insurer, with a strong track record of delivery and an unwavering commitment to our customers. We are very well positioned to accelerate growth in the capital-light areas of wealth, health and general insurance and deliver more and more for our shareholders.”