Aviva plc·Financial Services

Aviva: Strong Results And Capital Returns Support Continued Upside

Aviva PLC (LSE:AV.) offers the best combination of earnings growth, income and balance sheet strength in the sector, UBS believes.

Aviva PLC's (LSE:AV.) strong 2025 results have done little to close the valuation gap that makes the insurer one of the more compelling cases in the European financial sector, according to some analysts, with the shares still trading at a meaningful discount to peers despite a track record of consistent delivery.

Aviva plc (AVVIY) Q4 2025 Earnings Call Transcript

Aviva PLC announced a 10% increase in its final dividend alongside a £350 million share buyback as it posted results for what chief executive Amanda Blanc boasted was an "outstanding performance" for 2025. Group operating profit jumped 25% to £2.2 billion as the life insurer delivered financial targets 12 months ahead of schedule.

Aviva has executed a successful U.K.-focused strategy, divesting non-core assets and acquiring Direct Line to strengthen its market position. Operational performance has improved, with rising profits, strong solvency, and increased cross-selling, supporting a 5.6% dividend yield above the FTSE 100 average. Dividend growth is expected to slow to low-to-mid single digits per share, as the Direct Line acquisition increased the share count by 14%.
Aviva plc provides various insurance, retirement, investment, and savings products in the United Kingdom, Ireland, Canada, and internationally. The company offers life insurance, long-term health and accident insurance, savings, pension, and annuity products, as well as pension fund business and lifetime mortgage products. It also provides insurance cover to individuals, small and medium-sized businesses for risks associated with motor vehicles and medical expenses, as well as property and liability, such as employers' and professional indemnity liabilities. In addition, the company provides investment management services for institutional pension fund mandates; and manages various retail investment products, including investment funds, unit trusts, open-ended investment companies, and individual savings accounts for third-party financial institutions, pension funds, public sector organizations, investment professionals, and private investors. It markets its products through a network of insurance brokers, as well as MyAviva platform. The company was formerly known as CGNU plc and changed its name to Aviva plc in July 2002. Aviva plc was founded in 1696 and is headquartered in London, the United Kingdom.
Financial Services
Insurance - Diversified
29,091
2010-04-05
0.63