Prices increases drive Aviva shares to highest level since financial crisis

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favorite tales on this weekly publication.Aviva shares have hit their highest stage because the 2008 monetary disaster as income on the FTSE 100 insurer jumped by 22 per cent within the first half of the 12 months. Reporting its first outcomes since finishing its £3.7bn takeover of smaller rival Direct Line in July, Aviva stated working income rose to £1.1bn, up greater than a fifth 12 months on 12 months, boosted by sturdy progress on the whole insurance coverage premiums and better flows into its wealth enterprise.Normal insurance coverage premiums rose by 7 per cent, whereas internet flows into its wealth enterprise elevated by 16 per cent, leaving the division with greater than £200bn in property. Shares rose 5 per cent in early buying and selling in London to 691p, a greater than 17-year excessive.Chief government Amanda Blanc stated that buying and selling had been “excellent proper throughout Aviva”, with gross sales in its well being division additionally rising as extra folks opted for personal medical insurance coverage. The insurer stated it could improve its interim dividend by 10 per cent, to 13.1p per share. The outcomes don’t embrace numbers from Direct Line, because the takeover was accomplished after the outcomes interval. Blanc stated integration of the tie-up was “properly beneath manner”. Individually on Thursday, rival Admiral posted a 69 per cent bounce in pre-tax income, to £521mn in its personal half 12 months, due to “pricing self-discipline” regardless of a drop in motor insurance coverage prices from document highs. The outcomes come after the UK monetary watchdog warned insurers final month that it could scrutinise a controversial apply for vetting prospects, following issues that teams had charged larger premiums to poorer customers.The Monetary Conduct Authority discovered proof of “poor claims dealing with” within the outcomes of probe into the sector, however stated automobile insurance coverage costs had risen from 2022 to 2024 “primarily” due to inflation, reasonably than “agency income”, taking some stress off the trade.