Aviva issues statement after DLG slapped with £10.6m fine

Aviva has issued a statement in response to Direct Line Group (DLG) receiving a fine of over £10m from the Prudential Regulation Authority (PRA).

On 11 March 2026, the PRA hit UK Insurance Limited, a subsidiary and principal underwriter of DLG, with a £10.625m fine for a miscalculation of its Solvency II balance sheet during 2023 and 2024.

The miscalculation arose due to ineffective preventative and detective controls and resourcing issues in its finance and actuarial functions.

It went undetected by DLG’s internal controls for a significant period of time.

“Following identification of the miscalculation, DLG made a regulatory news service announcement acknowledging the miscalculation and the knock-on effect on the reported SCR coverage ratio and reported the correct figure,” the PRA said.

”DLG’s senior management notified the PRA without delay, undertook detailed investigations to ascertain the root cause of the error and remediated the position.”

Aviva statement

This announcement comes after Aviva acquired DLG for £3.7bn in 2025.

The PRA said that ”since its acquisition of DLG in 2025, Aviva has continued to improve DLG’s finance and actuarial control framework”.

In its own statement, Aviva said that it ”was fully aware of this matter prior to agreeing the terms of the acquisition of DLG and the outcome is fully provided for in the acquisition balance sheet”.

The insurer said: ”Aviva notes the outcome of the PRA’s investigation into a miscalculation of DLG’s solvency position, which was identified and disclosed by DLG in August 2024.

“This is an historical issue relating entirely to a period before Aviva completed its acquisition of DLG in July 2025.

”The PRA has acknowledged that DLG and, subsequent to completion of the acquisition, Aviva, have cooperated with their investigation in an exemplary manner and, as a consequence, the financial penalty has been discounted by the maximum amount possible.  

“Following completion of the acquisition, Aviva has also taken extensive action to enhance the financial reporting control environment within the former DLG part of the business.

“Aviva was fully aware of this matter prior to agreeing the terms of the acquisition of DLG and the outcome is fully provided for in the acquisition balance sheet. The resolution of this matter has no impact on the integration of DLG into Aviva, which is proceeding well, and no impact on the expected financial benefits arising from the acquisition.