Aviva reported a 24% increase in operating profit for the first half of 2026, helped by progress following its acquisition of Direct Line. Aviva posted operating profit of £1.3 bn for the six months ended June 30, up from £1.1 bn a year earlier.
The London-listed group completed its £3.6 bn acquisition of Direct Line in July 2025. Aviva, which provides home, motor and life insurance in the UK and serves around 25 mn customers, said the integration has contributed to higher earnings across the business.
General insurance premiums increased 29% to £8.1 bn, while UK and Ireland premiums rose 42% to £5.9 bn. Aviva’s wealth business also grew 32% to £7.6 bn, supported by a new pension scheme and higher sales through its investment platform.
Aviva remains on track to capture the expected financial benefits from the transaction. The insurer expects to meet its three-year financial targets in 2028, when it forecasts that 75% of earnings will come from capital-light businesses.
We are making very good progress with the integration of Direct Line. We have quickly improved Direct Line’s profitability, grown price comparison website sales, and maintained excellent levels of customer service.
Amanda Blanc, Aviva chief executive
Richard Hunter, head of markets at Interactive Investor, said the results further strengthened Aviva’s position in the UK home and motor insurance markets. He said higher motor premiums have frustrated consumers, with insurers facing increased vehicle values and more expensive repairs as cars incorporate more complex technology.
Aviva is also extending its use of artificial intelligence across the business as it looks for operational gains from its customer data and technology systems. The insurer described its data resources as a competitive advantage that it expects to support future growth.
The company said AI is already producing measurable benefits in medical underwriting. Aviva has introduced a generative AI tool that reads and summarises lengthy medical reports, extracting information relevant to underwriting decisions.
Further deployments are planned during 2026. Aviva expects to introduce an AI virtual assistant later in the year and is rolling out AI-enabled claims agents designed to support customers during the claims process.
The technology programme is developing alongside the Direct Line integration, giving Aviva a larger general insurance business and broader customer base. Its first-half results show the acquisition already contributing to premium growth while the group continues investing in automation across underwriting and claims.
Aviva agreed to acquire Direct Line Insurance Group in December 2024 through a recommended cash-and-share transaction valuing Direct Line. The deal valued each Direct Line share at 275 pence.
Under the final terms, Direct Line shareholders received 0.2867 new Aviva shares and 129.7 pence in cash for each Direct Line share they held. The scheme also allowed for up to 5 pence per share in dividend payments before completion. Direct Line shareholders were expected to own about 12.5% of the combined group, with existing Aviva shareholders retaining around 87.5%.
The transaction was completed on July 1, 2025 through a court-approved scheme of arrangement. Direct Line shares were subsequently delisted from the London Stock Exchange, while Aviva issued more than 378 mn new shares to settle the equity portion of the consideration.
Aviva said the acquisition would strengthen its position in UK motor and home insurance and expand its customer base.
The integration has since become a major part of Aviva’s earnings and cost programme. Aviva is targeting £225 mn of run-rate cost synergies from the acquisition and more than £350 mn of capital synergies.
By its latest update, the group said it had already delivered £100 mn of annualised cost savings and transferred nearly £5 bn of Direct Line assets to Aviva Investors.
