The combined group could potentially ’almost double the joint second-largest players’ market share’, says analyst
Aviva could end up building a powerhouse in the insurance industry with its acquisition of Direct Line Group (DLG), according to GlobalData.
Aviva announced its £3.7bn takeover of DLG in December 2024 and recently revealed that the deal is set to finalise at the start of July 2025, following a court sanction hearing.
GlobalData said its UK Top 25 General Insurance Competitor Analytics report shows that, as a standalone business, Aviva accounted for 9.7% of gross written premium (GWP) in 2023.
“It has a healthy lead over Allianz and Axa – the joint second-largest players which each control 7.6% of the market,” the analytics firm said.
And with DLG, GlobalData said the combined group could potentially “almost double the joint second-largest players’ market share (14.4%)”.
Beatriz Benito, lead insurance analyst at GlobalData, added: “In particular, the greatest advancements will be in the motor insurance space, where Aviva could end up controlling roughly a fifth of the market (19.6%).
“It would also command a significant share of the total UK property insurance market (17.3%).”
According to Uswitch, Admiral Group currently has the largest market share when it comes to the motor market.
Concerns
However, Benito also warned that “having a dominant player in the market may end up reducing the number of major competitors”.
Read: DLG announces new appointments to executive committee after Aviva deal
Read: What the Aviva and Direct Line mega-deal means for UKGI
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“The resulting larger combined group could benefit from operational efficiencies, which may potentially reduce costs for Aviva and may result in more-favorable premium rates for customers.
“At the same time, having a dominant player in the market may end up reducing the number of major competitors, thereby limiting consumer choice.
“Meanwhile, the proposed merger has already had repercussions with top executives at DLG stepping down from their position and fears arising about potential job losses upon completion of the takeover.”
Last week (23 June 2025), DLG announced that chief executive Adam Winslow would step down alongside chief financial officer Jane Poole and the current non-executive directors.
His career began in 2019, when he joined a local north London newspaper after graduating from the University of Sheffield with a first-class honours degree in journalism.
He took up the position of deputy news editor at Insurance Times in March 2023, before being promoted to his current role in May 2024.View full Profile
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