Aviva premiums boosted by Direct Line deal but retirement sales come under pressure
Aviva said its premiums jumped in the first quarter, boosted by its acquisition of Direct Line, while flows into its wealth arm surged. The FTSE 100 insurer said general insurance premiums rose 19 per cent to £3.4billion.It said its UK and Ireland premiums jumped 26 per cent to £2.5 billion, boosted by the integration of Direct Line. The FTSE 100 insurer maintained its annual outlook and said its wealth offering also helped buoy its bottom line in the period. Across its wealth arm, net flows rose 49 per cent to £3.3billion, up from £2.3billion in the first quarter of 2025. Rising: Aviva said general insurance premiums across its business rose 19% in its first quarterBut Aviva's retirement business came under pressure, with sales slipping to £1.1billion from £1.8billion a year ago, as bulk purchase annuity volumes dropped 52 per cent.Individual annuity sales rose by 10 per cent. Health-related sales were also hindered by reduced consumer demand in the quarter, the company said. Aviva shares fell 1.26 per cent or 7.80p to 609.40p on Thursday morning, having risen 6 per cent in the past year. Chief executive Amanda Blanc said Aviva had delivered growth 'despite global market volatility.' She added: 'The integration of Direct Line is firmly on track with stronger profitability and policies sold through price comparison websites have nearly doubled since the start of the year.'Read More Gilts and pound steady as Streeting quits; Surprise GDP bounce | MARKETS LIVE Aviva secured the largest takeover of Blanc’s tenure last year when it closed its acquisition of motor insurer Direct Line for £3.7billion. In November, the insurer said it expected to make £225million of savings from combining the two businesses, nearly twice its original estimate.Keith Bowman, an equity analyst at Interactive Investor, said: 'Exposure to general insurance leaves Aviva calculating risks in relation to unknown events such as increased flooding under global climate change and wildfires in Canada, while previous business sales have reduced geographical diversity.'He added that the Direct Line deal had 'left Aviva more focused on capital light growth opportunities in general insurance, while product and geographical diversity exist including exposure to China and India via investments.'In all, and with Direct Line adding to growth momentum and the shares offering a dividend yield of over 6 per cent, City consensus opinion remains favourable in tone, pointing towards a cautious buy.'DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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Aviva premiums boosted by Direct Line deal but retirement sales come under pressure
