Aviva (AV) H1 2026 earnings summary

Executive summary

• Operating profit rose 24% year-over-year to £1,326m, with operating EPS up 10% to 31.8p, marking six consecutive years of strong financial performance and driven by all business units and successful Direct Line integration.

• IFRS Return on Equity increased to 20.3% (+2.1pp year-over-year).

• Wealth AUM grew 12% year-to-date to £261bn, with net flows up 32% to £7.6bn.

• Integration of Direct Line progressing well, unlocking synergies and strengthening market position.

• Interim dividend increased by 7% to 14.0p per share, reflecting confidence in future growth; recent share buyback completed.

Financial highlights

• Cash remittances up 47% to £1.5bn; solvency ratio at 176%, expected to reach high-180s by year-end.

• Group operating profit: £1,326m (+24% year-over-year); operating EPS: 31.8p (+10%).

• UK & Ireland GI premiums up 42% to £5.9bn, driven by Direct Line acquisition; operating profit up 50% to £643m; COR: 93.4%.

• Canada GI premiums up 3% to £2.2bn, operating profit up 22% to £262m; COR: 93.0%.

• Wealth operating profit up 34% to £102m; AUM up 12% to £261bn; net flows up 32%.

Outlook and guidance

• On track to deliver three-year targets: 11% CAGR in operating EPS (2025-2028), IFRS ROE >20%, and >£7bn cumulative cash remittances (2026-2028).

• Full-year operating EPS expected around 11%, slightly above prior guidance.

• Solvency cover ratio expected to be in the high-180s by year-end, subject to market movements.

• Direct Line cost synergies to reach £130m in 2026, fully realized next year.

• Wealth business on track for £280m operating profit by 2027.