Portfolio focus on UK, Ireland and Canada
A central plank of the strategy was to concentrate Aviva on its strongest franchises in the UK, Ireland and Canada, which were designated as core markets. In the UK, Blanc set an ambition for Aviva to be the country’s leading insurer, anchoring the group’s strategy around scale positions in life, general insurance and wealth.
To support this geographic focus, Aviva announced a series of disposals of non-core operations. These included the planned sales of Aviva France and Aviva Italy, which were described as major steps in the strategic transformation.
Capital release and balance sheet strategy
The sale of Aviva France and Italy was expected to generate around £3.0bn of excess capital on completion, strengthening the group’s capital and liquidity position. In addition, Aviva anticipated around £3.9bn of centre cash from the transactions, providing resources to support debt reduction, investment and potential capital returns.
Blanc framed these moves within a broader emphasis on financial strength and debt reduction as priorities for the group. The combination of disposals and balance sheet actions was intended to create the financial flexibility she had identified as necessary to fund business investment or return surplus capital to shareholders.
Early performance under the new strategy
the strategy was launched, Aviva reported operating profit of £1.2bn for the first half of 2020, which it described as strong given the trading environment. However, external commentary noted that half-year operating profits were down 12% compared with the same period in 2019, underlining the need for performance improvement alongside portfolio change.
Despite the earnings pressure, Aviva announced a second interim dividend of 6p per share in respect of the 2019 financial year, reinstating cash returns while the longer-term dividend policy review was under way. Blanc’s stated focus on financial strength and debt reduction sat alongside this commitment to maintain shareholder distributions. General insurance and personal lines metrics
Within general insurance, Aviva’s personal lines business generated net written premiums of £1.135bn in the first half of 2020. Personal lines accounted for 24% of Aviva’s total general insurance premium over the period, indicating the scale of the retail book within the wider P&C franchise.
Aviva reported a personal lines combined operating ratio of 97.8% in the first half of 2020, an improvement year-on-year and within the range typically associated with underwriting profitability. These metrics formed part of the operational backdrop as Blanc sought to transform performance across the refocused portfolio. Leadership and operating model changes
To support delivery of the new strategy, Aviva reported that it had “reinvigorated” its executive leadership team with seven appointments. These included new chief executives for UK & Ireland Life and for Aviva Investors, reflecting the importance of both the domestic life franchise and the asset management arm within the reshaped group. The refreshed executive team was tasked with driving execution across life, general insurance, wealth and investments in the core markets.
Progress to 2025: growth, capital and capital-light shift
By the first half of 2025, Aviva reported that strategic and operational momentum continued, with operating profit up 22% compared with the prior period. Amanda Blanc described Aviva’s performance in the first half of 2025 as outstanding, highlighting the 22% growth in operating profit and an extended track record of delivery.
Blanc said trading had been very good across Aviva and stated that the group was the number one UK wealth player, with more than £200bn of assets. She reported that net flows were up 16%, while in general insurance Aviva grew sales by 7% and operating profit by 29%, maintaining a disciplined approach.
Aviva said its general insurance operations now represent half of business unit operating profit, showing the contribution of P&C to group earnings. The health business grew in-force premiums by 14%, adding another area of growth within the refocused portfolio.
Aviva also reported that a combined business within the group is now a UK market leader with over 21 million customers, equivalent to around four in ten adults. The integration of this business was described as well under way, with management expressing confidence in its contribution to future growth.
Synergies, capital returns and capital-light mix
In a subsequent trading update, Aviva said premiums in a relevant segment were up 12% to £10, indicating continued top-line expansion. The group stated that a transaction or programme is expected to contribute materially to Aviva’s future growth and shareholder returns.
Aviva now expects to achieve £225m in cost synergies from this activity, nearly twice its original estimate. It also anticipates unlocking at least £500m of capital synergies and has said it expects to resume share buybacks next year, at a higher level, supported by these benefits.
Consistent with Blanc’s original focus on financial strength and flexibility, Aviva reported that it is directing resources towards capital-light areas in line with its strategy. The group now expects its business to be over 75% capital-light by the end of 2028, marking a substantial shift in its earnings and capital profile over the period of Blanc’s tenure.
