Aviva reports 24% jump in operating profit despite IFRS decline

Aviva reported a significant divergence in its first-half 2026 financial results, with group operating profit rising 24% to £1.326 billion. However, IFRS profit fell 49% to £418 million, largely due to £490 million in negative investment variances stemming from interest-rate and equity hedging.

The company’s performance was also influenced by the acquisition of Direct Line, completed on July 1, 2025. The integration of Direct Line has already contributed £100 million toward a £225 million cost synergy target. Aviva expects further capital synergies of more than £350 million by year-end, pending regulatory approval, which could increase the Solvency II shareholder cover ratio by over seven percentage points.