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- Aviva’s takeover of Probitas enabled it to re-enter the Lloyd’s of London market
Aviva enjoyed higher insurance premiums during the first quarter of 2025 following the takeover of underwriting syndicate Probitas.
The FTSE 100 company revealed its general insurance premiums increased by 9 per cent to £2.9billion in the three months ending March.
Premiums rose by 12 per cent to £2billion across the UK and Ireland, with personal lines up by 8 per cent and commercial lines expanding by 15 per cent.
Aviva said growth was driven by new business and last year’s £242million acquisition of insurer Probitas, which enabled the group to re-enter the Lloyd’s of London market after two decades away.
Meanwhile, the takeover of AIG’s life insurance business helped boost the company’s protection and health sales by 19 per cent to £126million.
And Aviva’s retirement sales tipped up by 4 per cent to £1.8billion, thanks partly to higher interest rates bolstering individual annuity sales by almost a third.
Acquisition: Aviva enjoyed higher insurance premiums during the first quarter of 2025 following the takeover of underwriting syndicate Probitas
Aviva has become a major provider of bulk purchase annuity (BPA) deals, whereby employers pass their pension obligations onto insurers.
Interest rate hikes in recent years have improved the funding positions of pension schemes, thereby making such de-risking more affordable.
Aviva completed £7.8billion of BPA sales in 2024, a 42 per cent year-on-year rise, and expects similar volumes this year.
Amanda Blanc, chief executive of Aviva, said: ‘We continue to be very positive about the outlook for 2025.
‘Our balance sheet is strong, we have a clear customer-focused strategy which we continue to deliver at pace, and our market-leading businesses are growing well, especially in capital-light areas.’
Aviva’s result comes one day after the Competition and Markets Authority (CMA) launched a probe into the firm’s planned £3.7billion acquisition of Direct Line, whose brands include Churchill and Green Flag.
The CMA will investigate whether the deal will lead to a ‘substantial lessening of competition within any market or markets in the United Kingdom for goods or services.’
It is inviting parties to comment over the coming fortnight and will decide by 10 July whether to give the merger the green light or undertake a more full-scale inquiry.
Should the takeover go ahead, the enlarged group will control about a fifth of the UK’s home and insurance market. Aviva will also become the country’s second-largest motor insurer behind Admiral.
Blanc said Aviva anticipates completing the deal by the middle of this year.
Aviva shares were 2.3 per cent up at 585.4p on late Thursday morning, taking their gains to around 22 per cent this year.
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Aviva boosts first-quarter premiums following Probitas acquisition
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