14th Aug 2026 10:01
(Alliance News) - Aviva PLC on Friday said it enjoyed a "strong" first half of 2026 as it backed its longer-term outlook.
The London-based insurer and wealth manager said operating profit was GBP1.33 billion in the six months that ended June 30, 24% from GBP1.07 billion a year before, as insurance revenue climbed 23% to GBP13.48 billion from GBP10.99 billion.
Operating profit topped Visible Alpha consensus of GBP1.25 billion. Operating earnings per share were up 10% to 31.8 pence from 29.0p.
Pretax profit declined 29% to GBP905 million in the recent half-year from GBP1.27 billion a year prior.
Aviva posted an insurance service result of GBP1.27 billion, up 20% from GBP1.05 billion a year before. Its undiscounted combined operating ratio improved to 93.3% from 94.6% a year before. A figure below 100% indicates a profit on insurance underwriting.
However, its net financial result fell to GBP186 million from GBP699 million.
Aviva's investment return jumped to GBP20.77 billion in the recent half-year from GBP8.51 billion a year before, but counterbalancing this was a GBP17.15 billion hit to profit from the movement in non-participating investment contract liabilities, compared to a GBP5.32 billion hit a year ago. Aviva said this related mostly to hedging on interest rate and equity exposures.
Additionally, investment expense attributable to unit holders increased to GBP872 million from GBP184 million.
IFRS profit fell 49% to GBP418 million from GBP819 million a year before. However, IFRS return on equity was 20.3% in the first half of 2026, up from 18.2% in the first half of 2025.
"Aviva's results in the first half of 2026 were very strong," Chief Executive Officer Amanda Blanc said.
Blanc said Aviva is making "very good progress" with the integration of Direct Line, an acquisition it sealed in July of last year.
"We are confident that we will meet our three-year financial targets in 2028 and expect 75% of our earnings to be capital-light by that point," she said.
"Beyond this, Aviva is in a great position to sustain strong earnings growth over the longer term, particularly in the high growth areas of Wealth, UK and Canada General Insurance, Global Corporate and Specialty, and Health & Protection."
For 2026, Aviva expects operating EPS growth in line with its 11% aim. Its three-year target, which it is also "on track to deliver", is for compound annual growth in operating EPS of 11% between 2025 and 2028.
"In Individual annuities, we expect continued growth, supported by strong demand and the launch of new propositions. While bulk purchase annuity market conditions remain competitive, we continue to trade actively and have written GBP1.9 billion year-to-date," Aviva said. "We will maintain pricing discipline and write business above our low-teens internal rate of return hurdle."
Aviva Investors recorded net inflows of GBP1.5 billion in the recent half-year, swung from GBP1.2 billion in outflows a year before. The Wealth business had positive GBP7.6 billion in net flows, up 32% from GBP5.8 billion a year before.
The firm raised its interim dividend by 6.9% to 14.0 pence from 13.1p.
Aviva shares were 0.9% higher at 719.80 pence each on Friday morning in London.
By Tom Budszus, Alliance News slot editor
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