Highlights

  • Day By Day’s analyst has issued a Buy rating on Aviva with a target price of AUD 15.63 per share, implying a potential upside of 12.58% from current levels.
  • Group operating profit rose 22% to £1,068 million in the first half of 2025, supported by growth across capital-light businesses.
  • Interim dividend increased 10% to 13.1 pence per share.

Aviva plc (LSE:AV) has received a Buy rating from Day By Day’s analyst, who set a target price of AUD 15.63 per share, representing a 12.58% increase from the current market price.

The positive assessment follows Aviva’s first-half results for 2025, marked by a 22% year-on-year increase in operating profit to £1,068 million, up from £875 million in the previous corresponding period. Notably, 66% of group operating profit now originates from capital-light businesses.

Solvency II Own Funds Generation rose 20% to £909 million, while Solvency II Operating Capital Generation increased 33% to £957 million. The company’s Solvency II return on equity reached 16.7%, compared to 12.4% in the prior period, with an IFRS return on equity of 20.6%.

Cash generation remained resilient, with cash remittances rising 7% to £1,022 million, while Insurance, Wealth & Retirement (IWR) sales grew 9% to £21.5 billion. In the General Insurance segment, premiums increased 7% to £6.29 billion, supported by favorable underwriting performance. The company maintained a combined operating ratio (COR) of 94.6% undiscounted and 90.4% discounted.

Aviva also reported IFRS profit of £819 million, up from £654 million in the same period last year.

The integration of Direct Line, completed on 1 July, is progressing as planned. Although its first-half results were not consolidated into Aviva’s interim numbers, the acquisition is expected to be earnings accretive by around 10% on a run-rate basis and to enhance Aviva’s capital-light profit profile further. The company will provide detailed updates on synergies and integration progress at its upcoming “In Focus” event in November.

Looking ahead, Aviva reaffirmed confidence in its 2026 targets, including operating profit of £2 billion, Solvency II Own Funds Generation of £1.8 billion, and cumulative cash remittances exceeding £5.8 billion for the 2024–2026 period. Management highlighted the company’s diversified business model, enabling strategic discipline amid varying market conditions across its global operations.