Aviva reports record BPA volumes and £7.8bn transactions in 2024

Aviva reported record bulk purchase annuity (BPA) volumes in 2024 alongside £7.8bn of BPA transactions, against a backdrop of rising group operating profitability and strong capital generation. The results show higher sales and flows across Insurance, Wealth and Retirement, with Aviva Investors returning to stronger profit growth within the group platform. The year’s figures sit on a balance sheet with total group assets under management of £407bn as at 31 December 2024. Group adjusted operating profit increased 20% to £1,767m from £1,467m, providing more earnings capacity to support BPA and broader retirement growth. IFRS return on equity rose to 15.6% from 12.7%, even as IFRS profit for the year declined to £705m from £1,106m, showing a shift in mix and capital efficiency rather than headline profit expansion.

Capital generation and solvency position

Underlying Solvency II own funds generation increased 18% to £1,503m from £1,278m, giving Aviva more recurring capital to deploy into long‑dated annuity and retirement liabilities. On a total basis, Solvency II own funds generation was £1,655m, 4% lower than the £1,729m reported a year earlier, reflecting non‑underlying items despite the stronger underlying trend.

At 31 December, group Solvency II shareholder surplus stood at £7.9bn, providing a substantial buffer over regulatory requirements to support BPA and other capital‑intensive new business. The estimated Solvency II shareholder cover ratio was 203%, indicating more than double the required capital coverage on a shareholder basis.

Cash remittances from business units increased 5% to £1,992m from £1,892m, improving the group’s ability to upstream cash while still writing record BPA volumes and expanding in retirement and wealth.

Insurance, Wealth & Retirement growth

Insurance, Wealth & Retirement sales rose 22% to £43.5bn from £35.5bn, with BPA contributing to this expansion alongside other protection and savings lines. Within this, Retirement present value of new business premiums (PVNBP) increased to £9,408m from £7,088m, consistent with higher BPA transaction activity and broader retirement demand.

Wealth net flows reached £10.3bn compared with £8.3bn, showing stronger inflows into platform and wealth products that sit alongside annuity and pension solutions in Aviva’s retirement ecosystem. These flows add to the asset base that can be managed either internally or via Aviva Investors, reinforcing the link between liability growth and investment scale. General insurance and underwriting performance

General insurance gross written premiums were £12.2bn in 2024 versus £10.9bn in 2023, with premiums up 14% to £12,204m from £10,888m on the group’s reported basis. The undiscounted combined operating ratio was 96.3%, broadly stable versus 96.2% a year earlier, indicating that premium growth has been achieved while maintaining underwriting discipline.

This combination of premium expansion and a sub‑100% undiscounted COR supported the 20% increase in group operating profit to £1,767m from £1,467m, alongside contributions from life, retirement and asset management.

Asset management contribution via Aviva Investors

Aviva Investors’ operating profit improved to £40m from £21m, reflecting better profitability from the group’s asset management arm as it manages a larger pool of internal and external assets. Revenues at Aviva Investors increased 8% to £374m from £346m, supported by higher average assets and product mix, including mandates linked to insurance and retirement balance sheets.

These results sit within the wider group platform of £407bn of assets under management, which provides scale for originating and managing assets backing BPA and other long‑term liabilities.

Portfolio reshaping and geographic focus

Aviva Singapore was disposed of on 18 March, continuing the group’s multi‑year reshaping of its geographic footprint to focus on core markets that align with its BPA, retirement and wealth strategy. The disposal removes a non‑core operation from the consolidated perimeter while leaving group capital and solvency metrics at elevated levels, including the 203% Solvency II shareholder cover ratio.

Profitability and returns

Operating profit across the group increased by 20% to £1,767m from £1,467m, driven by higher contributions from Insurance, Wealth & Retirement, General Insurance and Aviva Investors. Despite lower IFRS profit of £705m compared with £1,106m, the group delivered a higher IFRS RoE of 15.6% versus 12.7%, indicating more efficient use of equity capital in a year of record BPA volumes and £7.8bn of transactions.

The combination of strong underlying capital generation, a 203% Solvency II shareholder cover ratio and rising operating profitability sets the context for Aviva’s next phase of BPA and retirement deployment, with no specific timetable disclosed for any change in capital framework or strategic allocation.

--- Sources: https://www.aviva.com/investors/results-presentations-reports/ https://www.aviva.com/newsroom/news-releases/2025/02/FY2024-results-announcement/ https://static.aviva.io/content/dam/aviva-corporate/documents/investors/pdfs/results/2024/aviva-plc-results-announcement-2024.pdf