Aviva Shares Soar to Multi-Year High on Robust H1 Performance and Dividend Boost
Shares in Aviva plc (LON: AV..) surged to levels unseen in years on Thursday following the release of the insurer’s strong interim results for the first half of 2025. Investors reacted enthusiastically to both solid financial performance and a hike in dividends.
The UK insurance giant reported a 22% rise in operating profit alongside a 10% increase in its interim dividend, signalling robust growth and bolstering market confidence.
Aviva’s stock jumped to 688.8p, marking a gain of more than 4% on the day. Year-to-date, the shares have climbed around 45.6%, reaching their highest levels since May 2018.
The latest Aviva results highlight a company performing strongly across all fronts. Group operating profit hit £1.068 billion, up from £875 million in the same period last year.
Growth was driven by several key areas. General Insurance premiums rose by 7% to £6.29 billion, while Insurance, Wealth & Retirement (IWR) sales increased by 9% to £21.5 billion. Solvency II operating own funds generation (OFG) also jumped 20% to £909 million, underscoring a healthy capital position.
Profitability metrics showed further gains. Solvency II return on equity reached 16.7%, and IFRS return on equity climbed to 20.6%.
The strong results have directly benefited shareholders. “The interim dividend per share has been raised to 13.1p, a 10% increase compared to last year,” Aviva confirmed.
A solid capital position underpins the insurer’s performance, with a Solvency II shareholder cover ratio of 206%. Looking forward, Aviva aims to achieve £2 billion in operating profit by 2026.
Market analysts noted that the combination of robust profit growth and higher dividends has reignited investor interest in Aviva shares. The company’s strategic focus on diversified insurance operations and wealth management appears to be paying off.
This surge in the stock reflects a broader positive sentiment in the UK insurance market, with investors favouring firms that demonstrate consistent growth and reliable returns.
