Financial news

Aviva plc 2024 Results Announcement

Another year of excellent performance and consistent delivery

Strategic and operational momentum continues with operating profit up 20%

Confident outlook for 2025 and beyond

Operating profit1 Underlying SII OFG Undiscounted COR Solvency II cover ratio2 2024 total dividend per share

£1,767m

£1,503m

96.3%

203%

35.7p

+20%

+18%

+0.1pp

(4)pp

+7%

2023: £1,467m

2023: £1,278m

2023: 96.2%

2023: 207%

2023: 33.4p

Amanda Blanc, Group Chief Executive Officer, said:

“2024 was an excellent year, right across Aviva. We made clear strategic progress and delivered another set of very good numbers, with higher sales, higher operating profit and a higher dividend. Over the last four and a half years we have completely transformed Aviva, built a track record of consistently strong results, and returned £10 billion to shareholders.

“Our success is built on delivering excellent customer service. We now have 17 million customers in the UK – more than any other insurer – and with our diverse range of products across insurance, wealth, and retirement, we’re serving more customer needs, which is fuelling growth throughout the business. 

“The proposed acquisition of Direct Line is on track and is a clear opportunity to accelerate our capital-light growth, deliver brilliant service to millions more customers, and support the wider development of the UK economy.

“Aviva is in great shape. We have clear trading momentum which is generating strong and reliable growth. We have increased our dividend, again, and are committed to growing it further. There is so much untapped potential for Aviva to go after and I have real confidence in our ability to unlock this. So I’m more excited about Aviva’s future than ever before, and I’m personally looking forward to delivering this next phase of progress.”

Strong performance with continued profitable growth momentum

  • Group operating profit up 20% to £1,767m (2023: £1,467m).
  • Underlying Solvency II own funds generation (OFG) up 18% to £1,503m (2023: £1,278m). Solvency II OFG 4% lower at £1,655m (2023: £1,729m) where the prior period included a one-time £208m benefit from partnership extensions.
  • Underlying Solvency II operating capital generation (OCG) up 17% to £1,244m (2023: £1,063m). Solvency II OCG up 1% to £1,468m (2023: £1,455m).
  • Solvency II return on equity 13.6% (2023: 14.7%) and IFRS return on equity of 15.6% (2023: 12.7%).
  • Cash remittances up 5% to £1,992m (2023: £1,892m).
  • Insurance, Wealth & Retirement (IWR) sales3 up 22% to £43.5bn (2023: £35.5bn).
  • General Insurance premiums3 up 14%4 to £12,204m (2023: £10,888m). Undiscounted COR of 96.3% (2023: 96.2%) and discounted COR of 92.2% (2023: 92.7%).
  • IFRS profit for the year5 of £705m (2023: £1,106m).
  • Solvency II shareholder cover ratio of 203% (2023: 207%) remains strong and resilient. Centre liquidity (Jan 25) of £1.7bn (Feb 24: £1.9bn).
  • Solvency II debt leverage ratio of 28.9% (2023: 30.7%).
  • Final dividend per share up 7% to 23.8p (2023: 22.3p). Total dividend per share up 7% to 35.7p (2023: 33.4p).

Accelerating shift towards higher returning capital-light areas

  • 56% of the Group’s 2024 operating profit is from capital-light businesses
  • Proposed acquisition of Direct Line6 to add further capital-light operating profits with c.10% run-rate EPS accretion 
  • Progressing in line with expectations with completion anticipated in mid-20256

Continued growth momentum across the Group

  • UK&I General Insurance premiums up 16% to £7,699m (2023: £6,640m) and undiscounted COR of 94.9% (2023: 96.8%). UK personal lines premiums grew by 22% driven by new business success in higher margin retail business and favourable pricing. UK commercial lines premiums grew 12% due to pricing actions, new business growth and the acquisition of Probitas.
  • Canada General Insurance premiums up 11% to £4,505m (2023: £4,248m) and undiscounted COR of 98.5% (2023: 95.3%). We saw continued growth of 13% in personal lines and 7% in commercial lines driven by pricing actions and new business growth, while the COR was impacted by CAT events in Q3.
  • Protection sales3 up 42% following completion of the AIG UK protection (‘AIG’) acquisition in April and double-digit growth in Health in-force premiums7.
  • Wealth net flows of £10.3bn (2023: £8.3bn) up 23%, or 6% of opening Assets Under Management (AUM) as Platform flows saw a significant improvement. AUM grew 17% to £198bn (2023: £170bn).
  • Retirement sales of £9,408m (2023: £7,088m) were 33% higher, driven by our highest year of BPA sales at £7.8bn (2023: £5.5bn). VNB was up 4% to £300m. 
  • Aviva Investors is a core enabler of growth for the Group, originating £3.2bn of real assets for our annuities business, and c.65% of Workplace net flows went into Aviva Investors funds. External net flows remained positive at £0.2bn (2023: £0.7bn). Liquidity strategies, reported outside external net flows increased to £4.4bn (2023: £0.8bn). 

Group financial performance

General Insurance premiums Solvency II OCG IFRS profit for the year

£12,204m

£1,468m

£705m

+14%

+1%

(36)%

2023: £10,888m

2023: £1,455m

2023: £1,106m

Cash and liquidity

Cash remittances Centre liquidity8

£1,992m

£1,695m

+5%

(10)%

2023: £1,892m

Feb 24: £1,891m

Confident outlook

Today, we’re already majority capital-light and we’re continuing to accelerate by investing in the business and through M&A. The proposed acquisition of Direct Line6 will further power this trajectory, accelerating beyond 70% of capital-light operating profit as synergies are delivered. Our positive momentum continued in 2024 with another strong set of results. While we expect to revisit our Group targets following the completion of the proposed acquisition of Direct Line, we remain confident in meeting the Group standalone targets outlined at our full year 2023 results presentation:

  • Operating profit: £2bn by 2026.
  • Solvency II OFG: £1.8bn by 2026.
  • Cash remittances: >£5.8bn cumulative 2024-26.

In General Insurance we remain focused on pricing appropriately to maintain the strong rate adequacy of the book. We expect continued improvement in the COR, subject to normal weather conditions.

In our Health business we anticipate further growth towards our 2026 ambition of £100m operating profit. In Protection, growth from AIG will moderate, with profits from the acquisition emerging over time as the CSM is added to and then released. In Wealth we expect our strong growth momentum to continue towards our ambition for £280m operating profit by 2027.

In BPA we expect to remain active, and we anticipate volumes to remain at similar levels to those achieved over the last three years, although given the exceptional market conditions in 2024 those volumes may not be repeated, with our primary focus remaining on margins and IRRs.

As part our proposed acquisition of Direct Line, the Group has stated that the transaction’s cash component will be funded from internal resources. Remittances related specifically to the transaction will be considered special in nature and will be reported outside of normal cash remittances.

Download our 2024 full year results announcement (PDF 1.8 MB)

Download our 2024 full year results presentation (PDF 2.4 MB)

Watch our 2024 full year results video with Group CEO, Amanda Blanc DBE

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Transcript  for video Watch our Group CEO, Amanda Blanc’s 2024 full year results video

VOICE OVER: We’re Aviva.

With our customers today, for a better tomorrow.

All 20 million of them.

Supporting them through all the key moments in their lives, by being the go-to brand

for their insurance, wealth and retirement needs.

Today, we’ve released an excellent set of full year results.

Thanks to the hard work and dedication of our colleagues,

making it click for our customers, clients, communities, shareholders and each other.

1.76 billion of operating profit.

Underlying SII Own Funds Generation at £1.5bn.

Undiscounted COR at 96.3%.

Solvency II cover ratio is 203%.

2024 total dividend per share is 35.7p.

We have momentum.

We’re growing right across the Group.

We’re consistently delivering for our customers and we're excited about the future.

MICHAEL KORNER: Amanda. Great to be here with you today to talk about our full year results.

Could you start just by sharing some of the headlines in your own words?

AMANDA BLANC: Well, first of all, thank you very much for doing this, Michael.

It's really great to be here.

And actually, I think when you look back at 2024, what you see from Aviva

is a really excellent set of results with strong and consistent delivery.

So what does that mean?

Well, I think what we've seen is great growth right across the business.

And that's translated into double digit growth in operating profit, double digit growth in our underlying Own Funds Generation, and strong cash remittances, which of course are our three key targets.

So I think, you know, this is an impressive set of results, and we're very, very pleased with them.

MICHAEL KORNER: That's fantastic to hear. Now could you talk some of the highlights from across the Markets?

Yes I can and there are lots of highlights.

So let's start with the UK and Ireland General Insurance.

Firstly your own part of the business, Aviva Zero has had a really great performance in 2024, but the overall business has had strong performance. Plus 16% growth overall.

You've seen really strong growth in Personal Lines but also strong growth in Global Corporate Specialty and the mid-market and SME business.

So, overall very, very strong performance.

Turning now to Canada.

Canada clearly had strong growth, double digit, but they also had CAT events during 2024.

A significant number of events, lots of customer claims.

But they handled them brilliantly with really, really good market leading customer service.

Turning now to IWR, Insurance, Wealth and Retirement.

Let's start with the Insurance part of that business.

Strong and profitable growth in the Health business.

In Protection we've integrated the AIG business.

Then if you look at Wealth, we've had a terrific year, £200 billion of assets.

We’re the largest wealth platform in the UK.

And just to put that in some sort of context, we've grown by £50 billion over the last two years.

So we've seen strong growth both in Workplace but also on the Adviser Platform.

And finally, if we think about the Retirement business, we've had record flows in the Bulk Purchase Annuity business, which is, you know, incredibly strong.

And that has been supported by Aviva Investors who have originated assets

to back that business.

MICHAEL KORNER: Sounds like we've got strong organic growth across all of our markets.

Now, a large part of our strategy is about becoming capital light.

Can you tell me a bit more about that?

AMANDA BLANC: Yes. So, as you know, we have an ambition to reach 70% of our business capital

light by 2026.

And why do we use this expression capital light? Why is this important?

Well, obviously, if you're growing the business but using less capital to do that, then the business is going to be more profitable.

And that's really good for our shareholders.

And I think through the organic growth that we've achieved in the business, but also the targeted M&A that we've already undertaken, so AIG and Probitas, it means that we are making really good progress towards that ambition.

Now, clearly with Direct Line Group, that gives us the opportunity to accelerate that even further and that's why that is so exciting.

Thank you. Can you say a bit about how we’re delivering for our customers?

Yes. I mean obviously the customer is at the heart of Aviva’s strategy. And with 17 million customers in the UK and over 20 million customers, if you include Canada and Ireland, I think we've got a huge responsibility to make sure that we do a really good job for our customers.

So we've done loads of things in 2024, but maybe I'll pick up three things which I think are,

you know, really important.

Firstly, we launched the new MyAviva app.

So as we call it, the digital front door, which sounds pretty fancy, but what it really means

is the customers get better digital journeys.

And what we've seen there is the Online Experience Score increasing to over 70% in 2024,

which I think is a really strong progress for us.

Then secondly, if we talk about this very big topic of generative AI and, you know,

obviously everybody's really keen on this at the moment.

But here what we've done is for our claims agents, we've used generative AI so that when the customer is actually dialling in, we're using generative AI behind the scenes to call up the customer details, everything that's happened on the claim so that when the agent

speaks to the customer, they've got that information in front of them and also, the likely question that the customer is ringing up about, which I think is really clever

and also means the customers are not kept waiting on hold. And we've seen nearly half

of our agents now using that in Motor. So I think that's great.

And the third area that's worth pointing out is our service called Find and Combine. And here what we do is help our customers to pull together workplace pensions that they may have had from previous employment into one place.

MICHAEL KORNER: Turning now to our shareholders. What's the message for them today?

AMANDA BLANC: So there's five messages for the shareholders today.

The first one is Aviva is the go-to diversified insurer in the UK with attractive businesses

in Canada and Ireland.

Secondly, we have a customer focused strategy. Thirdly, we have organic growth opportunities across the UK, Ireland and Canada, in all lines of business.

Fourthly, we spent the last four years delivering and we've shown a consistent track record of delivery.

And finally, we're delivering superior returns for shareholders and that can be further enhanced with the acquisition of Direct Line Group.

MICHAEL KORNER: And finally, what would you like us to take from today's results?

AMANDA BLANC: So I think what you see here is a business that’s performing, right. It's got momentum, but there's still a huge amount more to go after.

So everybody should be really excited about what the opportunities are.

And of course, that's created by the great people that we have within the business.

If you think about all of our colleagues working really hard for our customers, what I want to do today is, of course, the key message to them is to say: thank you very much, but please don't stop.

MICHAEL KORNER: Thanks so much for your time, Amanda. It's been great talking to you today.

AMANDA BLANC: Thank you, Michael.

Footnotes

1.  Reference to operating profit represents Group adjusted operating profit which is a non-GAAP Alternative Performance Measure (APM) and is not bound by the requirements of IFRS. Further details of this measure are included in the 'Other information' section of the Aviva plc Annual Report and Accounts 2024.

2.  Solvency II shareholder cover ratio is the estimated Solvency II shareholder cover ratio at 31 December 2024.

3.  Sales for Insurance, Wealth & Retirement (IWR) and for Retirement (Annuities and Equity Release) refers to Present Value of New Business Premiums (PVNBP). Sales for Insurance (Protection and Health) refers to Annual Premium Equivalent (APE). Premiums for General insurance refer to gross written premiums (GWP). The first instance of each reference has been footnoted. However, this footnote applies to all such references in this announcement. PVNBP, APE and GWP are APMs and further information can be found in the 'Other information' section of the Aviva plc Annual Report and Accounts 2024.

4.  All GWP movements and Canada General Insurance movements are quoted in constant currency.

5.  IFRS profit for the year represents IFRS profit after tax.

6.  Subject to Direct Line Insurance Group plc (Direct Line) shareholder vote and regulatory approvals.

7.  Health in-force premiums represents the total premiums attributable to Health policies in-force as at the reporting date, and is used to measure the growth of the Health business.

8.  Centre liquidity is presented as at the end of the month immediately preceding results publication. Accordingly cashflows in 2024 reflect those in the 11 month period from March to January of the subsequent year. Cashflows in 2023 reflect those in the 12 month period from March to February of the subsequent year.

Enquiries

Investor contacts:

Greg Neilson
+44(0) 7800 694 564

Joel von Sternberg
+44(0) 7384 231 238

Michael O'Hara
+44(0) 7387 234 388

Media contacts:

Andrew Reid 
+44 (0)7800 694 276

Sarah Swailes
+44 (0)7800 694 859

Timings:

Presentation slides: 0700 hrs GMT

Real time media conference call: 0800 hrs GMT

Analyst presentation: 0900 hrs GMT

Notes to editors

  • All figures have been translated at average exchange rates applying for the year, with the exception of the capital position, which is translated at the closing rates on 31 December 2024. The average rates employed in this announcement are 1 euro = £0.85 (2023: 1 euro =£0.87) and CAD$1 = £0.57 (2023: CAD$1 = £0.60). Where percentage movements are quoted on a constant currency basis, this is calculated by applying year to date average exchange rates to prior year.
  • Growth rates in this announcement have been provided in sterling terms unless stated otherwise.
  • All percentages, including currency movements, are calculated on unrounded numbers so minor rounding differences may exist.
  • Throughout this report we use a range of financial metrics to measure our performance and financial strength. These metrics include Alternative Performance Measures (APMs), which are non-GAAP measures that are not bound by the requirements of IFRS and Solvency II. A complete list and further guidance in respect of the APMs used by the Group can be found in the 'Other information' section of the Aviva plc Annual Reports and Accounts 2024.
  • We are the UK's leading diversified insurer and we operate in the UK, Ireland and Canada. We also have international investments in India and China.
  • We help our 20.5 million customers make the most out of life, plan for the future, and have the confidence that if things go wrong we’ll be there to put it right.
  • We have been taking care of people for more than 325 years, in line with our purpose of being ‘with you today, for a better tomorrow’. In 2024, we paid £29.3 billion in claims and benefits to our customers.
  • In 2021, we announced our ambition to become Net Zero by 2040, the first major insurance company in the world to do so. While we are working towards our sustainability ambitions, we recognise that while we have control over Aviva’s operations and influence over our supply chain, when it comes to decarbonising the economy in which we operate and invest, Aviva is one part of a far larger global system. Nevertheless, we remain focused on the task and are committed to playing our part in the collective effort to enable the global transition. Find out more about our climate goals at www.aviva.com/sustainability/climate and our sustainability ambition and action at www.aviva.com/sustainability.
  • Aviva is a Living Wage, Living Pension and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at www.aviva.com/about-us/our-people
  • As at 31 December 2024, total Group assets under management at Aviva Group were £407 billion and our estimated Solvency II shareholder capital surplus as at 31 December 2024 was £7.9 billion. Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
  • For more details on what we do, our business and how we help our customers, visit www.aviva.com/about-us
  • The Aviva newsroom at www.aviva.com/newsroom includes links to our spokespeople images, podcasts, research reports and our news release archive. Sign up to get the latest news from Aviva by email.
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