Aviva plc (LSE:AV.) reported a 25% increase in annual profit and announced the resumption of its share buyback programme, supported by higher insurance premiums, growth in its wealth division and the integration of rival Direct Line Insurance Group plc.
Operating profit for the 2025 financial year reached £2.2bn, up from £1.8bn the previous year and broadly in line with analyst forecasts compiled by the company.
The insurer, which provides car, home and life insurance across the UK, Ireland and Canada, also proposed a final dividend of 26.2 pence per share and announced a £350m share buyback. The repurchase programme resumes after being paused during the acquisition of Direct Line.
Within its core operations, general insurance premiums increased 18% to £14.1bn, while net inflows into the group’s wealth business rose 6% to £10.9bn.
Aviva reaffirmed the financial targets it set out in November, including plans to grow earnings per share by around 11% annually through to 2028. The company also expects to almost double the cost savings anticipated from combining its operations with Direct Line.
The insurer completed the £3.7bn acquisition of Direct Line last year, marking the largest takeover during the tenure of chief executive Amanda Blanc. The deal significantly expanded Aviva’s presence in the UK motor insurance market and is expected to generate substantial operational efficiencies in the coming years.
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