Aviva on track to hit targets amid General Insurance and Wealth growth

Aviva PLC on Friday said it is in "great shape" as it reported increased insurance sales, boosted by personal lines growth, and an improved combined operating ratio.

In response, shares in the London-based insurer and asset manager operating in the UK, Ireland and Canada rose 1.8% to 753.00 pence each in London early Friday morning. The wider FTSE 100 was down slightly.

General Insurance premiums increased 18% to £11.80 billion in the first nine months of 2026 from £9.97 billion the year prior.

Within this, UK General Insurance premiums grew 28% to £8.02 billion from £6.27 billion, Ireland GI premiums rose 9.0% to £450 million from £413 million and Canada GI premiums edged up 1.2% to £3.33 billion from £3.29 billion.

The UK saw 54% growth in personal lines, supported by the acquisition of Direct Line Insurance Group and continued growth in Intermediated business. Commercial lines were 5% lower as Aviva said it maintained underwriting discipline to focus on profitability in current market conditions.

Canada saw 4% growth in personal lines supported by pricing actions across auto and property, while commercial lines were flat reflecting the "competitive rating" environment.

"We see many opportunities to continue our profitable growth in General Insurance, including growing Direct Line motor and home policies on price comparison websites, the launch of Aviva pet insurance this year, and through our market leading businesses in Canada and Ireland," Chief Executive Amanda Blanc said.

The group undiscounted combined operating ratio improved to 93.8% from 94.4% as "strong rate adequacy and favourable prior year development were partly offset by elevated weather-related activity in Canada in the third quarter."

Wealth net flows increased 31% to £10.87 billion from £8.31 billion a year ago, representing 6% of opening assets under management, with strong growth in Workplace and Platform.

Retirement new business sales of GB3.50 billion were down 34% from £5.33 billion a year ago, with Individual Annuities sales up 7% and Equity Release sales up 11%. Bulk purchase annuity sales slumped 50%, "as we observed lower quote activity and competition remained

high."

Aviva Investors reported net flows of £1.5 billion versus nil a year ago.

Aviva said its estimated solvency II shareholder cover ratio was 179% at compared to 176% at the end of June. It expects the solvency ratio to be in the high-180s by the end of 2026.

Looking ahead, Aviva said it is on track to deliver its three-year group targets: operating earnings per share compound annual growth of 11% through 2025 to 2028, IFRS return on equity of greater than 20% by 2028 and cash remittances of more than £7 billion between 2026 to 2028.

It continues to expect operating EPS growth in 2026 to be broadly in line with its 11% target rate.

In General Insurance, Aviva said it is track to meet 2026 guidance for the UK & Ireland GI business to achieve a core operating ratio of over 94% and for the COR in Canada to be approaching 94%.

In commercial lines, Aviva expects the "softer rating environment to persist in the coming months and we will continue to prioritise underwriting discipline."

Aviva expects to see continued momentum on the Direct Line integration and business performance improvement, with £130 million

cumulative run-rate cost synergies and the remaining £350 million capital synergies expected to be achieved by the end of 2026.

In Wealth, it expects continued growth momentum underpinned by its Workplace business.

CEO Blanc said: "Aviva is in great shape", and called the performance "excellent" in the first nine months of 2026.

"We continue to deliver strong, profitable growth, particularly in the capital-light areas of General Insurance and Wealth," she noted.

"Aviva's continued strong trading, our strengths in artificial intelligence, and our leading market position, reinforce our confidence that we will meet our three-year financial targets and grow earnings over the longer term," the CEO added.

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