Aviva shares rose about 2% in early trading on Friday after the insurer published a strong third-quarter update, making it the FTSE 100's best performer in a subdued London session. The group reported general insurance premiums up 19% to £11.8 billion for the first nine months of 2026, alongside sharply higher wealth inflows.

The growth was driven by the UK, where general insurance premiums rose 28%, boosted by Aviva's home insurance partnership with Nationwide and progress integrating Direct Line, the motor and home insurer Aviva acquired for £3.7 billion. In the UK and Ireland, premiums rose 27% to £8.5 billion, with personal lines up 54% on the back of the Direct Line deal and continued growth in broker-distributed business.

Wealth arm leads the growth

Aviva's wealth business was the standout performer. Net flows jumped 31% to £10.9 billion, up from £8.3 billion a year earlier, while assets under management grew 19% to £267 billion. Customer numbers have now passed six million, and chief executive Amanda Blanc said Aviva is the number one wealth player in the UK.

Underwriting profitability also improved. The group's undiscounted combined operating ratio, which measures claims and costs against premiums, strengthened by 0.6 percentage points to 93.8%, from 94.4% in the same period last year. Aviva said strong pricing and favourable development on earlier claims more than offset elevated weather-related claims in Canada during the third quarter.

Commercial lines premiums were 5% lower, which Aviva said reflected underwriting discipline as it chose profitability over volume in current market conditions. The group said its general insurance performance showed the benefits of scale across a diversified business, with growth concentrated in capital-light areas such as general insurance and wealth.

Outlook and targets

Aviva said it remains confident about the rest of 2026 and expects earnings per share to grow broadly in line with its target of 11% this year. Its estimated Solvency II cover ratio, a key measure of an insurer's financial strength, stood at 179% at the end of September, up from 176% at the half year.

The insurer is on track for its three-year targets, which include operating earnings per share growing by an average of 11% a year between 2025 and 2028, a return on equity above 20% by 2028, and cash remittances of more than £7 billion over 2026 to 2028. Amanda Blanc said: "Aviva is in great shape. Our performance has been excellent in the first nine months of 2026, demonstrating once again the benefits of scale across our diversified business."

The wider FTSE 100 was little changed in early trading on Friday, with investors weighing a global technology sell-off and renewed tensions between the United States and Iran. Aviva's update was one of the few significant pieces of corporate news in London on the day, and analysts at JP Morgan described it as a strong underwriting performance in property and casualty insurance, with strong wealth flows as well.