Aviva doubles personal insurance premiums after deal
Aviva’s UK personal lines insurance premiums nearly doubled in the first half of 2026, reaching £3.68 billion. The company shared the figures in a trading update released Thursday.
The increase came from its £3.7 billion purchase of Direct Line Group, finalized in July 2025, and steady growth in intermediated business. Premiums climbed from £1.86 billion during the same period last year.
DLG integration boosts motor sales and earnings
Aviva reported that Direct Line Group’s results had strengthened since the deal. Motor insurance sales on price comparison websites rose 7% this year, marking a turnaround for the acquired business.
Amanda Blanc, the group’s chief executive, stated that the insurer had rapidly improved Direct Line Group’s earnings and expanded its presence on comparison sites while keeping customer service levels high. She confirmed the company remained on course to realize all financial gains from the acquisition.
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The deal also broadened Aviva’s customer reach. It now serves 25 million clients across an expanded product lineup, which Blanc described as a key edge in the market.
UK commercial lines premiums fell slightly from £2.01 billion to £1.93 billion. The company explained the drop reflected a deliberate focus on profitable growth rather than volume in a softer market.
Jason Storah, who leads UK and Ireland general insurance, noted that the commercial business continued to perform well despite conditions. He highlighted new digital tools that speed up quoting and risk placement for brokers, along with strong renewal rates.
Profit rises sharply as AI spending increases
UK and Ireland general insurance premiums grew 42% to £5.91 billion, while operating profit jumped 50% to £643 million. The undiscounted combined operating ratio for UK general insurance improved by 0.3 points to 93.4%.
Across the group, general insurance premiums rose 29% to £8.09 billion, and operating profit increased 24% to £1.33 billion.
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Aviva plans to keep investing in technology to support future growth, particularly in artificial intelligence and data. It has already seen practical gains from AI, including quicker medical underwriting reviews and automated quality checks in wealth management.
The company will introduce a virtual assistant and an AI-powered claims agent later this year. Both tools aim to enhance customer service. Blanc said the insurer’s size, reputation, and data would help it provide better service and meet more client needs over time.
Outlook: The rapid expansion in personal lines may test how quickly the market can absorb the added capacity. If demand weakens, maintaining profitability without relying on volume could become challenging.
The current figures show a business that has grown without hurting its margins.
