- Aviva’s adjusted operating profit for the first half of 2025 was GBP 1.07 billion, marking a 22% increase year-over-year, outperforming the estimated GBP 959.6 million.
- The IFRS profit after tax stood at GBP 819 million, which is a 25% rise from the previous year and exceeded the estimated GBP 634.2 million.
- The combined operating ratio improved to 94.6%, compared to 95.4% the previous year.
- Solvency II ratio was reported at 206%, slightly above the estimate of 205.9%.
- An interim dividend per share of 13.1 pence was announced, surpassing the estimated 12.9 pence.
- Aviva remains confident in meeting its group targets and aims for a GBP 2 billion operating profit by 2026.
- The company also targets GBP 1.8 billion in Solvency II Operating Free Generation by 2026.
- Aviva notes potential rate softening in the second half of the year in the general insurance sector.
- The integration of Direct Line into Aviva’s operations is progressing well.
- Current analyst ratings include 10 buys, 4 holds, and no sell recommendations.
Aviva on Smartkarma
Analyst coverage on Smartkarma by Harry Kalfas sheds light on Aviva’s recent Β£3.7B acquisition of Direct Line, a move set to bring significant changes to key UK and European indices. The merger of Aviva and Direct Line Insurance Group promises Β£125M in synergies by year three, with Direct Line shareholders set to receive a combination of cash, shares, and dividends. This acquisition is poised to have a notable impact on major indices in the UK and Europe, emphasizing the strategic implications of this multi-billion-pound deal.
According to Harry Kalfas‘s research report, the sentiment surrounding Aviva’s acquisition appears bullish as the integration of these two major insurers unfolds. With detailed insights into the transaction and its expected outcomes, the analysis on Smartkarma provides valuable information for investors navigating the dynamic landscape of the insurance industry. The comprehensive coverage by independent analysts like Harry Kalfas offers a nuanced understanding of Aviva’s strategic moves and their potential implications on the market, guiding investors towards informed decision-making.
A look at Aviva Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 4.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts using Smartkarma Smart Scores have given Aviva a positive long-term outlook. The company has received high scores in key areas such as Dividend, Growth, and Momentum, indicating strong performance in these aspects. Aviva’s focus on providing dividends to shareholders, driving growth, and maintaining positive momentum in its operations are seen as strengths that contribute to its overall outlook.
With its operations in various insurance sectors and financial services, Aviva PLC is positioned to benefit from its Resilience and Value factors. These scores suggest that the company has a solid foundation and is valued appropriately in the market. Investors looking for a company with a strong dividend track record, growth potential, and resilience in the face of market challenges might find Aviva an attractive long-term investment option based on these Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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