Workplace net flows increased by 36 per cent year on year to £5.1bn (HY25: £3.8 bn) driven by continued growth in regular member contributions and significant inflows from onboarded schemes, including £1.5bn from the initial transfers from the Mercer Master Trust, according to Aviva’s half year results.
Individual annuity sales increased 11 per cent at Aviva to £865m as customer demand in the high-interest rate environment continues.
However, bulk purchase annuity volumes were £1.1bn, down 58 per cent from £2bn in the first half of 2025. Aviva maintained an IRR of 18 per cent in this sector, the firm claiming that this figure reflected disciplined approach to pricing in a competitive market.
Amanda Blanc, chief executive of Aviva, says: “The results in the first half of 2026 were very strong, with operating profit up 24 per cent to £1.3bn. We have now achieved six consecutive years of excellent financial performance, with much more to come.
Last year, Aviva acquired Direct Line Insurance Group in a cash-and-shares transaction, and the deal became effective on 1 July 2025.
“We are making very good progress with the integration of Direct Line. We have quickly improved Direct Line’s profitability, grown price comparison website sales, and maintained excellent levels of customer service. We are well on track to deliver all the financial benefits of the acquisition,” she says.
Health in-force premiums grew 5 per cent to £1.1bn, driven by pricing actions ahead of inflation. Sales of £51m (HY25: £76m) were markedly lower, according to Aviva reflecting slowing market growth and trading discipline in the consumer and SME channels.
Aviva Investors delivered continued growth with total net flows of £1.5bn (HY25: outflows of £1.2bn), with 65 per cent of workplace net flows going into Aviva Investors’ funds.
