Aviva has recorded a boost in general insurance premiums after its acquisition of Direct Line granted it more command over the UK market.

Total group remiums rose 19 per cent in the first nine months of the year to £11.8bn, up from £10bn the prior year.

UK and Ireland premiums also grew 27 per cent to £8.5bn. Its personal lines segment, which covers motor, health and travel insurance, increased 54 per cent to £5.5bn, after receiving a boost from its acquisition of Direct Line.

The £3.7bn acquisition, which was completed in July 2025, has allowed Aviva control of a fifth of the UK motor insurance market. 

Chief executive Amanda Blanc said she is eyeing “many opportunities to continue our profitable growth in general insurance”. 

She noted further extension of Direct Line policies, the introduction of pet insurance and growing it reach in international markets Canada and Ireland, where it is among the leaders of general and life insurance.

But commercial lines insurance, aimed at businesses, suffered a five per cent decline to £2.9bn, reflecting “softer market conditions”.

Shares increased 2.1 per cent in early trading to 754.6p.

Wealth flows rise

Its wealth arm reached net flows of £10.9bn, compared to £8.3bn the prior year.

Assets under management also ticked up 19 per cent to £267bn, while customer numbers climbed to 6.1m, which Blanc said has caused its wealth business to be the “number one UK player”.

“We see significant opportunities for Aviva to expand further, across our workplace, adviser and direct businesses, giving us confidence that we will achieve at least £280m in operating profit in wealth by 2027,” Blanc said.

Chris Beauchamp, chief market analyst UK at investing and trading platform IG, said: “The strong trading in its wealth division provides another string to Aviva’s bow, and has played a big part in the rally in the shares.

“While we’re all used to thinking of Aviva as an insurer, it is growth in wealth management that offers the real potential for the future. With tech stocks looking wobbly again, Aviva’s combination of dividend and share price growth is a compelling proposition.” 

Division stumbles

Despite headline growth, the insurance giant faced pressure in several divisions.

Its retirement business saw nine-month bulk purchase annuities (BPA) volumes, insurance policies used by defined benefit schemes to transfer liabilities to insurers, halved to £1.9bn, amid increased competition in the market.

But Aviva noted that BPA deals signed or ones in the pipeline which refer to the insurer as the “preferred provider”, reached £5.8bn, ahead of the £4.6bn written across the entirety of 2025.

Meanwhile, health insurance sales fell 31 per cent to £81m amid slower market growth across consumer and small-business channels. 

Severe weather and catastrophe claims in Canada, its second-largest market, weighed on underwriting profits, while premiums for the year to date rose by just two per cent to £3.2bn.