Aviva has booked a 19% rise in general insurance premiums to £3.4 billion in the first quarter, with the latest results showing its Canadian business contributing to a broad-based improvement in profitability across the group.
The undiscounted combined operating ratio improved by 2.5 percentage points to 94.1%, from 96.6% a year earlier. The discounted COR stood at 90.0%, against 92.9% in Q1 2025.
Group chief executive Amanda Blanc said Aviva had delivered "another quarter of strong trading, building momentum in 2026,” pointing to profitable growth across the business despite global market volatility.
The Q1 results follow a 2025 full-year showing in which the insurance group posted operating profit of £2.203 billion, up 25%, meeting its 2026 financial targets a year early.
The newly acquired Direct Line contributed £174 million to that figure; excluding it, group operating profit still grew 15%. The board declared a final dividend of 26.2p per share alongside a £350 million share buyback and new three-year targets.
Canadian general insurance premiums were up 3% at constant currency to £0.9 billion, holding level with the prior-year period. Personal Lines premiums rose 4% at constant currency, or 1% at reported currency, driven by rate actions across auto and property.
Commercial Lines premiums were 1% higher at constant currency, with scheme wins in GCS partly offset by softer rating conditions. At reported currency, Commercial Lines premiums were 1% lower.
The Canadian undiscounted COR improved 4.4pp to 91.8%, from 96.2% a year earlier. The insurer attributed the gain to rate adequacy in Personal Lines, performance across GCS segments on lower frequency and severity, and favourable catastrophe experience.
Aviva said it remains on course to bring the Canadian COR "approaching 94%" for the full year 2026.
The estimated Solvency II shareholder cover ratio stood at 171%, down from 180% at full-year 2025, after the 2025 final dividend of £800 million, the £350 million share buyback and the end of grandfathering on £200 million of Tier 2 debt.
The insurer is targeting Direct Line capital synergies of more than £350 million by year-end, while centre liquidity sat at £1.3 billion at the end of April 2026. Wealth net flows rose 49% to £3.3 billion, representing 6% of opening assets under management.
Blanc said the group had made "an excellent start to 2026,” citing its diverse business model and confidence in meeting targets including operating EPS CAGR of 11% from 2025-28 and cumulative cash remittances of more than £7 billion across 2026-28.
