Aviva posts 9% rise in general insurance premiums in Q1 2025

Aviva reported a 9% increase in general insurance premiums in the first quarter of 2025 (Q1 2025), reaching £2.9bn, up from £2.7bn in the same quarter of the previous year.

Its UK and Ireland general insurance (UK&I GI) segment saw premiums increase by 12% to £2bn ($2.6bn), with an 8% rise in personal lines and 15% growth in commercial lines. According to the company, this growth reflects “strong new business and the acquisition of Probitas”.

In Canada, general insurance premiums remained flat at £900m (C$1.68bn) in reported currency basis and up 5% on constant currency basis, with personal lines posting a 10% rise due to pricing strategies. Commercial lines witnessed a 2% decline as the company maintained its focus on “margins over volume”.

The company’s retirement division sales also increased by 4% to £1.8bn, driven by individual annuities and equity release.

Its protection and health sales rose by 19% to £126m following the completion of an acquisition from AIG in April 2024. Health in-force premiums increased by 11%.

The insurer's wealth net flows reached £2.3bn in Q1 2025 as against £2.7bn in Q1 2024, representing 5% of opening assets under management.

Additionally, Aviva stated that estimated Solvency II shareholder cover ratio remains at 201%, compared with 203% in the prior year.

Aviva stated that it is already a more capital-light business, which accounts for 56% of operating profit, and the acquisition of Direct Line is expected to take this figure to beyond 70% as synergies and profits are delivered.

Expressing confidence in meeting its targets, the company aims to achieve an operating profit of £2bn by 2026, Solvency II OFG of £1.8bn by 2026 and cash remittances of more than £5.8bn cumulative for 2024–26.

Aviva Group CEO Amanda Blanc said: “Aviva has got off to a great start in 2025. We continue to trade strongly, serving our customers well, growing profitably right across the group, and demonstrating the resilience of our diversified business in a period of market volatility.

“We continue to be very positive about the outlook for 2025. Our balance sheet is strong, we have a clear customer-focused strategy, which we continue to deliver at pace, and our market-leading businesses are growing well, especially in capital-light areas. We are increasingly confident about Aviva’s prospects and meeting our financial targets.”

Blanc further added: “The acquisition of Direct Line is firmly on track. Direct Line shareholders voted overwhelmingly in favour of the transaction and we expect to complete the deal in the middle of the year.”