Aviva Plc · LSE:AV.
Aviva — H1 2025 Earnings Presentation
62 slides from Aviva's earnings presentation, Aug 14, 2025
Slide 1: Aviva
MI AVIVA
Slide 2: Cautionary statement and important information
Cautionary statement and important information Cautionary statement This presentation should be read in conjunction with the documents distributed by Aviva plc (the ‘Company’ or ‘Aviva’) through The Regulatory News Service (RNS).This presentation contains, and we may make other verbal or written ‘fo
Slide 3: Agenda
Agenda Group CEO Strategic Update Amanda Blanc, Group CEO Interim results 2025 Charlotte Jones, Group CFO Summary Amanda Blanc, Group CEO Q&A 3 Aviva: Confidential
Slide 4: Driving Aviva forward
Driving Aviva forward Strong half-year 2025 results, extending track record of delivery Moving at pace on Direct Line integration Excellent strategic progress, ready for the next chapter of Aviva’s growth 4 Aviva: Confidential
Slide 5: Strong half-year 2025 results
Strong half-year 2025 results Improving Growing Driving Delivering for capital profitably cash growth shareholders generation +22% +20% +7% +10% Operating profit Own funds generation1 Cash remittances Interim DPS £1,068m £909m £1,022m 13.1p 5 1. Solvency II operating own funds generation. Aviva: Con
Slide 6: Continued delivery across Aviva's business
Continued delivery across Aviva’s business General +7% 94.6% 17.3m Insurance GI premiums1 GI undiscounted COR UK customers +0.4m YoY Wealth £209bn £5.8bn Wealth AUM Wealth net flows 6% of opening AUM2 5.5m UK customers with 2+ Aviva policies +1.3pp +14% +0.2m YoY Protection & Health Protection NB ma
Slide 7: Direct Line acquisition completed – integration on track
Direct Line acquisition completed – integration on track ✓ Integration on track – welcoming new colleagues #1 UK Personal Lines player ✓ New leadership in place & embedding Aviva control Leading … and brands Online more ✓ Operational & customer service uninterrupted New SME Pet Rescue lines Direct F
Slide 8: Executing on consistent customer-centric strategy
Executing on consistent customer-centric strategy Accelerating Unlocking Operating Climate & capital-light customer leverage with social action growth advantage technology & AI Growth Customer Efficiency Sustainability The UK’s leading ‘go-to’ diversified insurer across insurance, wealth & retiremen
Slide 9: Materially shifting earnings mix towards capital-light
Materially shifting earnings mix towards capital-light Growth Accelerating beyond 70% Majority capital-light with Direct Line Below 50% Stronger capital-light today capital-light in 2022 growth <30% >70% 34% 66% 53% 47% Higher return UK&I on equity FY 2022 HY 2025 Operating Profit 1 Operating Profit
Slide 10: Accelerating with capital-light growth opportunities
Accelerating with capital-light growth opportunities Growth Market1 Aviva FY242 Wealth £2.3tn assets £209bn AUM Scaling & connecting offerings, with benefit of Aviva Investors 10-15% CAGR #1 player – on track for £280m Wealth op. profit ambition by 2027 Protection £16bn GWP £3.6bn sales Integrating
Slide 11: Unique customer franchise with huge opportunity
Unique customer franchise with huge opportunity Customer Leading UK FS customer franchise & brand Products to meet lifetime customer needs Number of UK customers1 Junior Car Workplace Health ISA Insurance Pension Insurance LBG 28m 21m+ incl. Direct Line 25m+ Global Barclays UK 20m customers Life & H
Slide 12: Unlocking customer advantage
Unlocking customer advantage Customer Growing our Serving more Transforming experience customer base customer needs & engagement +2m +4m >4m 42% 53.8 72.8% UK customers New customers Marketable customers New policies sold to Group TNPS Online Exp. Score since 2020 from Direct Line1 unlocked since 20
Slide 13: Focus on efficiency with technology and AI at the core
Focus on efficiency with technology and AI at the core Efficiency Transforming UK GI claims Offshoring & ~£100m ~£80m State-of-the-art fraud detection, with outsourcing Gross cost savings from Gross cost savings in 12 AI–driven models incl. speech & image Diligenta & FNZ, 2023-251 Aviva Investors vs
Slide 14: Supporting the UK – transforming communities
Supporting the UK – transforming communities Sustainability London Cancer Hub Norwich re-development World-leading research centre in Sutton Landmark deal with Norwich City Council £1bn 13k £350m 1,100 Cancer research lab Estimated job creation and Re-development of 1960s Estimated new homes develop
Slide 15: People and leadership behind Aviva's success
People and leadership behind Aviva’s success Today2 Aviva-wide 20191 leadership programme Attracting & retaining the best talent ✓ Truly engaged workforce 73% 91% Engagement All Aviva leaders across UK, Canada & Strong customer focus 49% 85% Ireland – incl. Direct Line leaders ✓ Customer focus Tailo
Slide 16: Compelling investment case
Compelling investment case The UK’s leading ‘go-to’ diversified insurer Insurance1 with market-leading positions in the UK, Canada and Ireland UK GI #1 Canada GI #2 Ireland GI #3 Accelerating capital-light growth Protection #1 organically and through targeted M&A Health #3 Consistent customer-centri
Slide 17: Agenda
Agenda Group CEO Strategic Update Amanda Blanc, Group CEO Interim results 2025 Charlotte Jones, Group CFO Summary Amanda Blanc, Group CEO Q&A 17 Aviva: Confidential
Slide 18: Half year 2025 – extending track record of strong delivery
Half year 2025 – extending track record of strong delivery Outperformance on Group metrics Business units delivering Operating profit Operating profit OwnOperating funds generation profit 1 Cash remittances GI premiums Operating profit Undiscounted COR Operating profit £1,068m £909m £1,022m £6.3bn 9
Slide 19: Growing in General Insurance at improving margins
Growing in General Insurance at improving margins Strong top-line growth… ...with margin improvement... ...generating more profit Premiums Underlying COR Operating profit +9% CAGR +17% CAGR (2.0)pp £6.0bn £6.3bn £648m £5.3bn 97.9% 96.8% £470m £503m 95.9% HY23 HY24 HY25 HY23 HY24 HY25 HY23 HY24 HY25
Slide 20: UK & Ireland General Insurance
UK & Ireland General Insurance Overall • Operating profit up 50%, with an improved underwriting result from 2024 Retail growth, earn through of pricing actions and better investment returns • Improvement in COR discounting reflecting higher opening yields and Premiums Operating profit changes in set
Slide 21: Canada General Insurance
Canada General Insurance 1 Overall • Operating profit of £218m and COR of 94.7% reflecting an improved underwriting result, partly offset by adverse weather Premiums Operating profit • Underlying COR of 94.8% improved by 4pp reflecting the earn through of £2.1bn £218m pricing actions, lower claims f
Slide 22: Growing operating profit and future value in IWR
Growing operating profit and future value in IWR Strong growth in profits… ...from growing releases... ...and building value for future profit… IWR operating profit IWR CSM release IWR CSM +9% CAGR +8% CAGR £575m £532m £486m +12% CAGR £7,778m £7,331m £6,654m £401m £418m £401m £418m £332m £332m HY23
Slide 23: IWR – Insurance
IWR – Insurance Protection • Sales of £172m were lower, as expected, due to the consolidation of propositions in the second half of 2024 following the acquisition from AIG Protection NB margin Health in-force premiums • Strong margin improvement reflecting consolidation of lower margin 7.0% £1.0bn •
Slide 24: IWR – Wealth
IWR – Wealth Workplace and Adviser platform • Workplace AuM up 6% YTD to £136bn with net flows up 8% reflecting growing regular member contributions, reaching £1bn of inflows per Net flows Revenue month, and strong new business £5.8bn £368m • Adviser platform AuM up 7% YTD to £58bn with net flows up
Slide 25: IWR – Retirement
IWR – Retirement BPA • Sales of £2.0bn written at returns above our low-teens IRR guidance across 43 deals, marginally lower than HY24 (£2.3bn) reflecting subdued market activity BPA sales Operating profit Individual annuities £2.0bn £338m • Sales up 29% reflecting increased operational capacity to
Slide 26: Continued strong grip on capital allocation & performance
Continued strong grip on capital allocation & performance Consistent capital allocation framework – discipline, agility, and keeping our commitments Sustainable growth Maintain balance Growing Investing in Returning capital in earnings & cash sheet strength regular dividend the business to sharehold
Slide 27: Continued investment to support growth and efficiency
Continued investment to support growth and efficiency General Insurance IWR Aviva Investors Distribution ratio Cost asset ratio Cost income ratio (0.5)pp (0.2)bps (9)pp 33.5% 32.4% 33.0% 43.7 43.3 43.5 97% 90% 88% HY23 HY24 HY25 HY23 HY24 HY25 HY23 HY24 HY25 • 0.5pp improvement driven by growth in •
Slide 28: Robust balance sheet and asset portfolio
Robust balance sheet and asset portfolio Solvency II cover ratio Shareholder asset portfolio Solvency II debt leverage 206% £86bn 32.3% Strong and resilient Defensively positioned Concluded the cancellation of the Group’s legacy preference shares Remain well positioned to absorb Resilient portfolio
Slide 29: Direct Line acquisition completed on 1st July
Direct Line acquisition completed on 1st July £125m Solvency towards top end of Group working range pro forma for Direct Line Annual incremental cost synergies Material increase to cover ratio over time as capital benefits realised ~£250m Integration costs £260m Direct Line Tier 2 notes approved for
Slide 30: Direct Line H1 2025 performance
- H1 2025 performance • H1 2025 reflects the performance prior to Aviva’s ownership following completion on 1 July 2025 • Direct Line’s accounting policies have been used as the basis of preparation, with no adjustment to align to existing Aviva policies, and comparability with Aviva’s UKGI results
Slide 31: Additional dividend uplift post-completion of Direct Line
Additional dividend uplift post-completion of Direct Line Dividends per share 10% growth in DPS in line with previous guidance of additional uplift post-completion1 +5% +5% Interim dividend has historically 13.1p reflected ~1/3 of the total dividend 11.9p Maintain our guidance for mid-single digit g
Slide 32: Confident outlook for 2025 and beyond
Confident outlook for 2025 and beyond Group targets Outlook Confident that we will deliver our • In General Insurance we remain focused on pricing appropriately to maintain Group targets on a standalone basis rate adequacy • We anticipate further growth momentum in Health and Wealth as we progress O
Slide 33: Agenda
Agenda Group CEO Strategic Update Amanda Blanc, Group CEO Interim results 2025 Charlotte Jones, Group CFO Summary Amanda Blanc, Group CEO Q&A 33 Aviva: Confidential
Slide 34: Next chapter of Aviva growth
Next chapter of Aviva growth Where we are today3 Where we are heading July 2020 Where we started1 >640p Accelerating Share price capital-light pivot ~270p >230% Shifting earnings mix beyond 70% Total shareholder return2 ~£20bn ~£11bn >£10bn Market cap. Capital returns & dividends Unlocking Focused t
Slide 35: Agenda
Agenda Group CEO Strategic Update Amanda Blanc, Group CEO Interim results 2025 Charlotte Jones, Group CFO Summary Amanda Blanc, Group CEO Q&A 35 Aviva: Confidential
Slide 36: Appendices
Appendices RM AVIVA
Slide 37: Confident in growth opportunities across our markets
Confident in growth opportunities across our markets Clear opportunities in all our markets… … underpinned by structural trends Increasing UK investment >£15tn £2.3tn Infrastructure, transport, energy UK total UK workplace pensions, household advice & investments1 wealth 10-15% CAGR2 Stronger fund f
Slide 38: Operating profit and operating value added
Operating profit and operating value added Operating profit Operating change in CSM Operating value added HY 2025 HY 2024 HY 2025 HY 2024 HY 2025 HY 2024 (£m) (£m) (£m) (£m) (£m) (£m) UK&I General Insurance 430 287 Canada General Insurance 218 216 IWR1 575 532 (59) (17) 516 515 - o/w Wealth 76 58 -
Slide 39: Contractual service margin development
Contractual service margin development Contractual service margin (CSM) Analysis of change CSM flat YTD and +6% YoY £29m £128m Operating change in the CSM1 of £11m £357m £211m £7,768m £7,778m £70m £69m For Protection new business and interest accretion exceed the CSM release Operating change in CSM1
Slide 40: Reinsurance cover levels
Reinsurance cover levels Per event (excess of loss) UK Ireland Rest of World Canada 2025 retention £200m €30m £75m C$125m 2024 retention £200m €25m £60m C$125m Maximum Cover £3.4bn £0.3bn C$4.5bn 40 Aviva: Confidential
Slide 41: Solvency II
Solvency II RM AVIVA
Slide 42: Capital position
Capital position Solvency II shareholder position Solvency II cover ratio 13% -6% 13% 206% 203% -9% -8% Preference £bn 31 Dec 2024 OCG Non-OCG Dividends share Debt 30 Jun 2025 cancellation Own funds 15,639 909 (464) (655) (653) 997 15,773 SCR (7,718) 48 (1) (7,671) Surplus 7,921 957 (465) (655) (653
Slide 43: Solvency II return on capital/equity
Solvency II return on capital/equity SII RoE 30 Jun 2025 30 Jun 2024 Change £m £m % 16.7% Life new business 221 189 17% Existing business 229 281 (19)% 3.6% Non-life capital generation 503 446 13% 12.4% 0.7% Debt & centre costs (incl. pref/DCI costs) (198) (200) 1% Management actions & other 147 (10
Slide 44: Solvency II return on capital/equity (HY25)
Solvency II return on capital/equity (HY25) Solvency II operating own funds generation Impact of Earnings Solvency II new from existing Management Non-life OFG (post Solvency II business business actions & capital TMTP Opening Return on (life) (life) other generation Total adjustment) own funds3 cap
Slide 45: Solvency II return on capital/equity (HY24)
Solvency II return on capital/equity (HY24) Solvency II operating own funds generation3 Impact of Earnings Solvency II new from existing Management Non-life OFG (post Solvency II business business actions & capital TMTP Opening Return on (life) (life) other generation Total adjustment) own funds2 ca
Slide 46: Solvency II return on capital/equity (FY24)
Solvency II return on capital/equity (FY24) Solvency II operating own funds generation Impact of Earnings Solvency II new from existing Management Non-life OFG (post Solvency II business business actions & capital TMTP Opening Return on (life) (life) other generation Total adjustment) own funds2 cap
Slide 47: Solvency II regulatory own funds tiering and debt leverage
Solvency II regulatory own funds tiering and debt leverage 30 Jun 2025 31 Dec 2024 % of own % of own 30 Jun 2025 31 Dec 2024 Regulatory view £m % of SCR £m % of SCR Regulatory view funds funds £m £m Unrestricted Tier 1 11,972 69% 128% 12,492 72% 133% Solvency II regulatory debt2 5,326 4,697 Restrict
Slide 48: Solvency II sensitivities (Group shareholder view)
Solvency II sensitivities (Group shareholder view) 30 Jun 2025 30 Jun 2024 Sensitivity Impact on surplus Impact on cover ratio Impact on surplus Impact on cover ratio £bn pp £bn pp Changes in economic assumptions 50 bps increase in interest rate 0.1 4pp 0.1 5pp 100 bps increase in interest rate 0.2
Slide 49: Debt call/redemption profile
Debt call/redemption profile Restricted Tier 1 Tier 2 Senior £769m £760m £746m £640m £260m2 4.000% £600m €464m £396m 1.875% £500m £500m £500m £500m £513m £400m £400m 5.125% €900m 3.375% 6.875% £500m €600m 6.875% 6.875% 6.125% 4.000% 4.625% 7.750% £200m £350m1 4.375% 4.750% C$450m £240m 6.125% 4.000%
Slide 50: IFRS
IFRS RM AVIVA
Slide 51: Protection & Health – operating value added drivers
Protection & Health – operating value added drivers 6 months 2025 6 months 2024 12 months 2024 Operating Operating Operating Operating Operating Operating Operating Operating Operating change in value change in change in profit profit value added profit value added £m CSM added CSM CSM New business
Slide 52: Retirement – operating value added drivers
Retirement – operating value added drivers 6 months 2025 6 months 2024 12 months 2024 Operating Operating Operating Operating Operating Operating Operating Operating Operating change in value change in change in profit profit value added profit value added £m CSM added CSM CSM New business - 107 107
Slide 53: Heritage – operating value added drivers
Heritage – operating value added drivers 6 months 2025 6 months 2024 12 months 2024 Operating Operating Operating Operating Operating Operating Operating Operating Operating change in value change in change in profit profit value added profit value added £m CSM added CSM CSM Releases from stock of f
Slide 54: Ireland – operating value added drivers
Ireland – operating value added drivers 6 months 2025 6 months 2024 12 months 2024 Operating Operating Operating Operating Operating Operating Operating Operating Operating change in value change in change in profit profit value added profit value added £m CSM added CSM CSM New business - 10 10 - 7
Slide 55: IWR Contractual service margin – analysis of change
IWR Contractual service margin – analysis of change 6 months 2025 New Interest Experience Assumption CSM Non- £m 31 Dec 2024 30 Jun 2025 business accretion2 variance changes release operating Protection 975 94 17 16 – (95) 7 1,014 Retirement 5,406 107 112 8 – (249) 9 5,393 Heritage 1,289 – 33 (42) –
Slide 56: Operating earnings per share
Operating earnings per share 6 months 2025 6 months 2024 Change £m £m % Group adjusted operating profit 1,068 875 22% Tax on Group adjusted operating profit (257) (208) (24)% Amounts attributable to non-controlling interests (12) (11) (9)% Coupon payments in respect of tier 1 notes (17) (17) – Prefe
Slide 57: Assets
Assets RM AVIVA
Slide 58: Total managed assets
Total managed assets Assets by type of liabilities covered (£m) Shareholder assets by type (£m) 312,067 85,971 300,845 12,546 83,068 12,373 30,049 28,589 External assets Participating funds 67,102 Annuity & non-profit 183,501 66,602 176,815 GI, Health & other Policyholder funds Shareholder funds 83,
Slide 59: Corporate bonds and government debt
Corporate bonds and government debt Shareholder assets (£bn) Corporate bonds by rating Corporate bonds by industry Government debt by rating £86.0bn 1% 9% 5% 14% 1% 14% 6% 8% 23% 25% £23.8bn 3% 7% 19% 5% 14% £21.2bn 8% 43% 8% 15% 72% AAA BBB Financials - banks Transportation & Storage AAA BBB AA <BB
Slide 60: Commercial mortgages
Commercial mortgages Shareholder assets (£bn) Commercial mortgages by geography Loan interest cover • Low average LTV of 42% on a fair value basis and £86.0bn 48% on a nominal basis 2.8x 2.7x 26% 2.6x 2.6x 2.7x London • Strong loan interest cover leaving borrowers 2.2x North West significant headroo
Slide 61: Equity release mortgages
Equity release mortgages Shareholder assets (£bn) • Securitised mortgage loan and equity release portfolio of £9.0bn is mostly internally securitised £86.0bn with low average LTV of 28.2% • ~91% of equity release loans have an LTV <50%2 • ~£8m of losses arising from ‘no negative equity guarantees’ i
Slide 62: Other shareholder assets
Other shareholder assets Shareholder assets (£bn) £86.0bn • Healthcare, Infra & PFI loans (incl. mortgage loans) are largely secured against infrastructure, healthcare, education, social housing and emergency services related facilities which receive government support and are at low risk of default