Aviva has booked a 19% rise in general insurance premiums to £3.4 billion in the first quarter, with its latest results showing the UK group pressing ahead with the integration of Direct Line and lifting profitability across its key markets.
The group's 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 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.
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.
UK&I general insurance premiums climbed 26% to £2.5 billion, helped by a 59% surge in Personal Lines on the back of the Direct Line acquisition and intermediated channel expansion. Commercial Lines premiums were 7% lower, reflecting the rating environment partly offset by retention.
UK Personal Lines premiums jumped 62% to £1.53 billion from £945 million, supported by Direct Line and a new home insurance partnership with Nationwide. UK Commercial Lines fell 8% to £834 million as the company applied underwriting discipline in softer market conditions.
Mid-market grew 1% on retention, while Digital and Schemes saw lower volumes due to profitability actions. The Probitas Lloyd's platform expanded modestly, and GCS volumes declined as the group prioritised price adequacy.
The UK undiscounted COR improved 0.5pp to 94.8%, with the discounted COR at 90.5%. Ireland premiums rose 8% at constant currency to £157 million, with the undiscounted COR improving 18.5pp to 99.3% on the absence of Storm Éowyn impacts.
Aviva's 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 buyback and the end of grandfathering on £200 million of Tier 2 debt.
The insurer remains on course to deliver Direct Line capital synergies of more than £350 million by year-end. Centre liquidity sat at £1.3 billion at the end of April 2026.
Blanc said the integration of Direct Line was "firmly on track", noting policies sold via price comparison websites had nearly doubled since the start of the year. Aviva reiterated its UK&I GI target of a COR below 94% for 2026, while Wealth net flows rose 49% to £3.3 billion.
The results round off a quarter in which Aviva continued to consolidate its position as Britain's largest general insurer following last year's £3.7 billion takeover of Direct Line.
