Its equity release portfolio had an average loan-to-value (LTV) ratio of 28.2%, with around 91% of loans having an LTV less than 50%.
Aviva said it was actively managing new business LTVs and it continued to be a “conservative lender”.
House price growth had resulted in LTV ratios falling, which Aviva said gave some headroom against property price uncertainty in the short term.
Its no-negative-equity guarantee, which sees Aviva deduct the potential shortfall between the value of a loan and the value of a property at the end of the term, resulted in around £8m in losses over 10 years.
Protection and GI performance
Aviva reported a 16% fall in protection sales to £172m, which it said was expected due to the consolidation of propositions following its acquisition from AIG.
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It said its margins were improving as it integrated both businesses.
The operating profit generated by its protection business rose 23% to £57m.
Premiums across Aviva’s UK and Ireland general insurance division increased by 9% to £4.1bn.
Operating profit was 50% higher at £430m, due to a “strong underwriting result” and improved investment return in the UK. However, this was partially offset by the impact of Storm Eowyn in Ireland.
An outstanding performance
Aviva reported a 22% increase in operating profit to £1.1bn, driven by growth in its UK and Ireland general insurance division.
Amanda Blanc, group chief executive at Aviva, said: “Aviva’s performance in the first half of 2025 was outstanding, growing operating profit by 22% and extending our track record of delivery. Another set of high-quality results, combined with excellent strategic progress, are further evidence of how we are pushing Aviva forward.
“We completed the acquisition of Direct Line at the beginning of July, just six months after our recommended offer, and integration is well underway. The combined business is a UK market leader with over 21 million customers, or four in 10 adults, and we are confident the deal will contribute significantly to Aviva’s future growth.”
She added: “Over the past five years, we’ve transformed the performance and prospects of Aviva. Today, we are the UK’s leading diversified insurer, with a strong track record of delivery, and an unwavering commitment to our customers.
“We are very well-positioned to accelerate growth in the capital-light areas of wealth, health and general insurance, and deliver more and more for our shareholders.”
