LONDON, 5 March – British insurer Aviva has reported a striking 25% increase in its annual profit, rising to £2.2 billion from £1.8 billion the previous year. Alongside this strong financial performance, the company has recommenced its share buyback programme, signalling renewed confidence in its growth trajectory.
The robust results follow the integration of Direct Line and have been bolstered by growth across insurance premiums, asset management, and investment income. Aviva, a leading provider of motor, home, health, and life insurance in the UK, has met analysts’ expectations for operating profit for 2025.
The company announced a final dividend of 26.2 pence per share and initiated a £350 million share buyback, which had been temporarily suspended due to the Direct Line acquisition. This acquisition, completed at £3.7 billion, represents the largest in CEO Amanda Blanc’s tenure and strengthens Aviva’s presence in the UK insurance market.
Key Financial Indicators
| Financial Metric | 2025 | 2024 | Growth Rate |
|---|---|---|---|
| Operating Profit | £2.2 bn | £1.8 bn | 22% |
| General Insurance Premiums | £14.1 bn | £11.9 bn | 18% |
| Net Asset Management Flows | £10.9 bn | £10.3 bn | 6% |
| Final Dividend | 26.2p | 25p | 4.8% |
| Total Revenue | £24.5 bn | £21.0 bn | 16.7% |
Drivers of Business Growth
General Insurance Premiums: Up 18% to £14.1 billion, reflecting strong demand across motor and home insurance segments.
Asset Management: Net inflows increased by 6% to £10.9 billion.
Investment Income: Boosted by new policies and portfolio realignment, rising 5%.
Direct Line Acquisition: The £3.7 billion acquisition expands market share and complements Aviva’s existing offerings.
Aviva reaffirmed its financial targets announced in November, including an 11% annual growth in earnings per share through 2028 and plans to double cost savings from the Direct Line integration. Analysts view Aviva’s consistent premium growth, strategic acquisitions, and resumption of share buybacks as positive signals for investors, particularly as the company strengthens its competitive market position.
Looking ahead, Aviva’s expansion strategy and success across diverse markets are expected to enhance long-term shareholder confidence and deliver sustainable income growth, reinforcing its position as one of the UK’s most resilient and forward-looking insurers.