Aviva reports 24% jump in first-half operating profit

Aviva reported a 24% increase in first-half operating profit, reaching £1.33 billion for the six months ended June 30. This performance exceeded market expectations and was bolstered by the acquisition of Direct Line and strong demand in general insurance.

Following the £3.7 billion takeover, Aviva has integrated all Direct Line employees and moved nearly £5 billion in assets to Aviva Investors. The company has already realized £100 million in annualized cost synergies, moving toward a £225 million target, and expects to generate over £350 million in capital synergies by year-end. CEO Amanda Blanc stated that Direct Line’s profitability has improved rapidly while maintaining customer service standards.

Financial metrics show an improvement in IFRS return on equity to 20.3% and a 47% surge in cash remittances to £1.5 billion. Aviva maintains its three-year financial targets, including an 11% compound annual operating earnings per share growth through 2028.