5th Mar 2026 09:41
(Alliance News) - Aviva PLC on Thursday announced a new GBP350 million share buyback as it reported annual results in line with expectations.
The London-based insurer said operating profit increased 25% to GBP2.20 billion in 2025 from GBP1.77 billion the year prior, in line with company compiled consensus.
This included a GBP174 million contribution from recent acquisition Direct Line Insurance Group, delivering Aviva's GBP2 billion operating profit target one year early. Excluding Direct Line, group operating profit increased by 15%.
Aviva said 68% of the group’s operating profit is now from capital-light businesses.
IFRS profit for the year was up 50% to GBP1.05 billion from GBP705 million.
Operating earnings per share grew 17% to 56.0 pence from 48.0p. Cash remittances increased 4.5% to GBP2.08 billion from GBP1.99 billion.
"We have achieved our 2026 financial targets one year early, highlighting the rapid and sustained progress we are making," said Chief Executive Amanda Blanc.
Blanc said results have been "excellent right across Aviva" and said the firm has been "transformed" over the last five years.
The insurer raised the final dividend per share by 10% to 26.2p from 23.8p. This takes the total dividend per share to 39.3p, up 10% from 35.7p.
In addition, Aviva announced a GBP350 million share buyback, which will start on Friday and be completed by August 6.
Aviva said general Insurance premiums rose 18%, UK & Ireland general insurance premiums increased 27% and UK personal lines premiums grew by 50%.
Wealth net flows rose 6%, Health saw 12% growth in in-force premiums, but retirement sales were were 30% lower, reflecting a more "typical year" of sales and in-line with previous guidance.
Looking ahead to 2026, Aviva expects "growth and earnings momentum supported by our diversified business model and the addition of Direct Line."
Last November, the FTSE 100 listing set out new three-year targets, aiming for operating EPS compound annual growth of 11% to 2028, an IFRS return on equity of more than 20% by 2028 and cash remittances of more than GBP7 billion between 2026 to 2028.
Aviva said in general insurance "we are well placed to navigate the cycle, leveraging our increased scale and expertise, while maintaining pricing discipline."
In Wealth, it anticipates "continued momentum in workplace and platform with further investment to
capture this significant opportunity, including in Direct Wealth."
Shares in Aviva were down 3.9% at 641.60 pence each in London on Thursday morning. The wider FTSE 100 was up 0.2%.
By Jeremy Cutler, Alliance News reporter
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