Aviva Set to Exceed 2026 Targets Early, Unveils Ambitious New Three-Year Plan
LONDON, 22 January 2026 – Aviva plc has declared it is on track to achieve its 2026 Group financial targets a full year ahead of schedule, powered by strong performance across its diversified business. The UK’s leading insurer used its third-quarter 2025 trading update to announce a significant upgrade to its ambitions, setting new three-year targets and detailing enhanced benefits from its landmark acquisition of Direct Line Group.
Accelerated Performance and Raised Ambitions
In a trading update on 13 November 2025, Group Chief Executive Amanda Blanc stated that Aviva expected to exceed its 2026 goals for operating profit (£2 billion) and Solvency II own funds generation (£1.8 billion) by the end of 2025. This milestone is set to be achieved before accounting for any contribution from the recently acquired Direct Line, underscoring the strength of the core Aviva business.
Building on this momentum, the company unveiled a new set of three-year financial targets through to 2028:
- Operating EPS Growth: A compound annual growth rate (CAGR) of 11%.
- Return on Equity (RoE): Targeting greater than 20% by 2028.
- Cash Remittances: Cumulative ambitions of over £7 billion between 2026 and 2028.
Direct Line Integration: Synergies Upgraded
The integration of Direct Line, completed on 1 July 2025, is progressing rapidly. Aviva has significantly increased its expectations for the deal, now targeting £225 million in annual run-rate cost synergies by 2028—nearly double the original estimate. The company also confirmed it expects to unlock at least £500 million of capital synergies, which would improve the group’s solvency ratio by more than 10 percentage points upon regulatory approval, expected around the end of 2026.
Amanda Blanc noted the acquisition accelerates Aviva’s shift towards a capital-light earnings model, with the business expected to be over 75% capital-light by the end of 2028. Shareholder distributions are also being enhanced, with a 10% increase in the 2025 interim dividend and plans to resume share buybacks at a higher level alongside the full-year 2025 results in March 2026.
Q3 2025 Trading Performance at a Glance
| Business Segment | Nine Months to 30 Sep 2025 Performance |
|---|---|
| General Insurance Premiums | Up 12% to £10.0bn, driven by 24% growth in UK Personal Lines (including Direct Line) and 10% growth in Commercial Lines. |
| Wealth Net Flows | £8.3bn, representing 6% of opening Assets Under Management (AUM). Total Wealth AUM reached £224bn. |
| Retirement Sales | £5.3bn, with Bulk Purchase Annuity (BPA) volumes of £3.9bn. Individual Annuity and Equity Release sales grew 24% and 39% respectively. |
| Solvency II Cover Ratio | 177% at 30 September 2025 (206% at Half Year 2025), reflecting the completion of the Direct Line acquisition. The ratio excludes the future £500m+ capital synergies. |
Strategic Focus and Market Position
Aviva’s strategy continues to focus on accelerating growth in capital-light areas such as wealth, health, and general insurance. The company now serves over 25 million customers globally, with 21 million in the UK alone—meaning approximately four in ten UK adults have an Aviva policy. The group’s in-house asset manager, Aviva Investors, which has over £250bn in assets under management, continues to be a core enabler, originating real assets for the annuities business and supporting wealth fund flows.
Beyond financial performance, Aviva has also announced the launch of a refreshed Aviva Foundation in early 2026. This new chapter for its charitable giving will consolidate previous programmes into two focused funds: a Financial Futures Fund and a Communities Fund, aiming to build financial resilience and support local organisations.
Frequently Asked Questions
What are Aviva’s new three-year targets?
Aviva has set new Group targets for the period through to 2028: operating earnings per share (EPS) growth of 11% CAGR, an IFRS Return on Equity of greater than 20% by 2028, and cumulative cash remittances of over £7 billion between 2026 and 2028.
How is the Direct Line integration progressing?
Integration is reported to be well underway and ahead of schedule. Aviva has upgraded its expected cost synergies from the deal to £225 million (from an initial estimate) and confirmed capital synergies of at least £500 million. The first £40 million of cost synergies are expected by the end of 2025.
What was Aviva’s financial performance for the first nine months of 2025?
The group delivered strong, broad-based growth. General insurance premiums rose 12% to £10 billion, wealth net flows were £8.3 billion, and the Solvency II capital position remained robust at 177% post the Direct Line acquisition.