Aviva has recorded a 9% year-on-year increase in general insurance (GI) premiums in the first quarter of its financial year.

The insurance firm stated that in the UK, its GI premiums increased by 12% to £2bn, driven by strong new business and the acquisition of Probitas.

In the first three months of the year, Aviva’s retirement sales increased by 4% annually to £1.8bn, while its health and protection and health sales jumped by 19% to £126m.

However, its wealth net flows dropped by 14.8% to £2.3bn. Aviva said that strong growth in its platform division was offset by the outflow of assets of a large Workplace scheme, following its decision to switch to another provider in 2023.

Aviva added that its £3.7bn acquisition of Direct Line is "firmly on track", with the deal expected to complete in the middle of the year.

Group chief executive officer at Aviva, Amanda Blanc, said: "Aviva has got off to a great start in 2025. We continue to trade strongly, serving our customers well, growing profitably right across the group, and demonstrating the resilience of our diversified business in a period of market volatility.

"Aviva has leading positions in growing markets and we have seen excellent trading in a number of areas. GI premiums increased by 9%, with strong performances in both personal and commercial insurance, including a travel insurance partnership with Nationwide and the benefits of acquiring Lloyd’s insurer Probitas."

Looking ahead to the rest of the financial year, Aviva said it was "confident" in its outlook. As set out in its 2023 results, the insurer anticipates an operating profit of £2bn by 2026, with cash remittances of over £5.8bn across the cumulative 2024 to 2026 financial year.

Head of equity research at Hargreaves Lansdown, Derren Nathan, said: "Aviva’s prowess as an insurance titan shone through in the first quarter with strong signals across the board.

"Acquisitions remain where it’s at with the £3.7bn takeover of Direct Line Group anticipated to close in the middle of this year. That is, however, subject to approval by the Competition & Markets Authority, which launched its review yesterday. The CMA has 40 days to opine on the deal.

"Aviva’s rock solid balance sheet means it should be able to absorb the motor insurance specialist without compromising on its 6.8% dividend yield. Guidance for operating profit of £2bn by 2026 remains unchanged. That’s not including the takeover so expect some refreshed targets should the deal complete in the summer."

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