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Aviva plc
(LSE:AV)
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Rating:62Neutral
Price Target:
781.00 p
▲(6.93% Upside)
Action:Reiterated
Date:08/19/26
Overall score reflects strong earnings-call momentum (profit growth, improved cash remittances, solid capital position and synergy delivery) and supportive technical trend, partially offset by elevated cash-flow volatility in the financial statements and a high P/E despite an attractive dividend yield.
Positive Factors
Direct Line synergies are improving scale and efficiency
The Direct Line integration is creating recurring cost, capital and claims benefits while expanding Aviva’s UK personal-lines scale. Continued synergy delivery should support efficiency, underwriting performance and capital generation beyond the integration period.
Negative Factors
Cash generation is volatile and weakened materially in 2025
Large swings in operating and free cash flow make internally generated funding less predictable. Although insurers naturally experience timing effects, repeated volatility can constrain flexibility for investment, distributions and strategic execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Direct Line synergies are improving scale and efficiency
The Direct Line integration is creating recurring cost, capital and claims benefits while expanding Aviva’s UK personal-lines scale. Continued synergy delivery should support efficiency, underwriting performance and capital generation beyond the integration period.
Read all positive factors
Aviva plc (AV) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£21.89B
Dividend Yield5.37%
Average Volume (3M)7.50M
Price to Earnings (P/E)40.2
Beta (1Y)1.15
Revenue Growth86.10%
EPS Growth-17.40%
CountryUK
Employees39,359
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)0.18
Shares Outstanding3,001,450,700
10 Day Avg. Volume7,570,440
30 Day Avg. Volume7,499,840
Financial Highlights & Ratios
PEG Ratio2.03
Price to Book (P/B)2.02
Price to Sales (P/S)0.33
P/FCF Ratio-6.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£742.00Price Target Upside1.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.6
Revenue Forecast (FY)£60.28B
Aviva plc Business Overview & Revenue Model
Company Description
Aviva plc provides various insurance, retirement, and wealth products in the United Kingdom, Ireland, Canada, India, and China. It operates through General Insurance; Insurance, Wealth & Retirement; Aviva Investors; and International Investments s...
How the Company Makes Money
Aviva makes money mainly by underwriting insurance and managing long-term savings and investments. In general insurance (e.g., motor, home, commercial lines), it earns premium income from policyholders and aims to generate an underwriting profit w...
Aviva plc Earnings Call Summary
Earnings Call Date:Aug 14, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 04, 2027
Earnings Call Sentiment Positive
The call highlighted multiple strong financial and operational outcomes — notably 24% operating profit growth, double-digit EPS growth, >20% IFRS ROE, large Wealth net flows (+32%), significant Direct Line synergies already delivered, and clear progress toward capital-lighting the business. These positives are tempered by near-term challenges including Health missing its GBP 100m target, a 14% drop in Protection profit, idiosyncratic large losses (particularly in Canada), one-off write-offs weighing on underlying COR, and elevated Q3 weather/CAT risk in Canada. On balance the positive momentum, delivered synergies, strong capital and cash generation, and scalable AI and customer advantages outweigh the setbacks, supporting an optimistic outlook for achieving the 3-year targets and sustained growth beyond 2028.Positive Updates
Strong Group Profitability
Operating profit up 24% to GBP 1.3bn; operating EPS growth of 10%; IFRS return on equity 20.3% (above 20%).
Negative Updates
Health Profit Short of Target
Health operating profit up 28% to GBP 37m in H1 but now expected to be around GBP 90m for 2026, falling short of the GBP 100m ambition for the year due to slower SME and consumer channel growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Group Profitability
Operating profit up 24% to GBP 1.3bn; operating EPS growth of 10%; IFRS return on equity 20.3% (above 20%).
Read all positive updates
Company Guidance
Management reiterated full‑year guidance of around 11% operating EPS (slightly above prior guidance) and said the group is on track for its 2026 combined‑ratio guidance, with H1 operating profit up 24% to £1.3bn, H1 operating EPS +10%, IFRS RoE 20.3% and cash remittances +47% to £1.5bn; solvency was 176% at H1 and is expected to be in the high‑180s by year‑end (including at least 7 additional points / ~£350m of Direct Line capital synergies), with cost synergies from Direct Line of £130m this year (c.£100m run‑rate already delivered), £150m capital synergies and £40m annual claims savings announced; underlying operating capital generation rose 14% to £812m, Wealth net flows were +32% to £7.6bn (AUM >£260bn) and the business remains on track to £280m operating profit by 2027, Retirement BPA written £1.1bn (YTD £1.9bn) with an H1 IRR of 18%, Health operating profit now expected ~£90m for 2026, BAU change investment is ~£450m p.a., and the group remains confident in its 3‑year targets and in reaching ~75% capital‑light by end‑2028.Aviva plc Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
66
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 72.69B | 58.51B | 40.86B | 41.33B | 5.56B | 31.98B |
| Gross Profit | 48.41B | 36.31B | 22.62B | 25.11B | -9.94B | 19.49B |
| EBITDA | 1.96B | 2.56B | 1.95B | 2.35B | -1.57B | 1.36B |
| Net Income | 633.00M | 1.03B | 684.00M | 1.08B | -1.05B | 416.00M |
Balance Sheet | ||||||
| Total Assets | 416.78B | 395.30B | 353.88B | 328.84B | 302.26B | 343.44B |
| Cash, Cash Equivalents and Short-Term Investments | 21.20B | 18.29B | 23.48B | 17.27B | 22.50B | 12.48B |
| Total Debt | 7.05B | 8.30B | 6.89B | 7.37B | 8.57B | 8.42B |
| Total Liabilities | 407.80B | 385.21B | 345.26B | 319.24B | 289.86B | 323.99B |
| Stockholders Equity | 8.91B | 9.69B | 8.30B | 8.79B | 12.09B | 19.20B |
Cash Flow | ||||||
| Free Cash Flow | 4.63B | -2.96B | 8.27B | -3.08B | 3.85B | 3.19B |
| Operating Cash Flow | 4.73B | -2.87B | 8.45B | -2.73B | 3.95B | 3.30B |
| Investing Cash Flow | -797.00M | -1.14B | 162.00M | -350.00M | 11.13B | -6.58B |
| Financing Cash Flow | -2.51B | -1.73B | -2.49B | -1.82B | -5.47B | -3.91B |
Aviva plc Risk Analysis
Aviva plc disclosed 15 risk factors in its most recent earnings report. Aviva plc reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aviva plc Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | £24.74B | 9.53 | 18.25% | 0.02% | 34.59% | 6.85% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | £21.89B | 40.19 | 6.80% | 5.69% | 86.10% | -17.40% | |
61 Neutral | £5.84B | 10.59 | 37.02% | 1.68% | 164.23% | 13.81% | |
56 Neutral | £15.74B | 24.75 | 27.28% | 7.27% | 136.58% | 192.71% | |
55 Neutral | £8.24B | 27.49 | 9.49% | 5.76% | 52.52% | ― |
* Financial Sector Average
GB:AV
Aviva plc
731.40
127.83
21.18%
GB:LGEN
Legal & General
287.40
71.11
32.88%
GB:PRU
Prudential
1,003.50
49.55
5.19%
GB:STJ
St. James's Place
1,144.00
-67.99
-5.61%
GB:MNG
M&G Plc
343.10
105.42
44.35%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.