Aviva completed £3.7bn Direct Line acquisition last year, cementing its status as the UK’s largest motor and home insurer. The deal helped lift Q1 general‑insurance premiums 19% to £3.4bn YoY. CEO Amanda Blanc continues reshaping the group after shedding overseas units in France and Poland, targeting higher earnings growth.

Wealth assets surged, with net inflows jumping 49% to £3.3bn, while the retirement division faced margin pressure as pension‑risk transfer sales fell 39% to £1.1bn and bulk‑purchase annuities halved to £600m. RBC analysts warn that further competitive strain could arrive in 2026 after Aviva closes the Just Group and Pension Insurance Corporation purchases.

Shares have underperformed, sliding 8% in 2026 and trading at about nine times forward earnings, cheaper than peers. Blanc bought £43,000 of stock on May 15, while her husband added £64,000. RBC rates the valuation “attractive” given an EPS outlook and an 8.5% projected capital‑return yield, reinforcing the buy‑the‑dip thesis.

The firm maintains its 11% compound annual EPS growth target for 2025‑28, relying on cross‑selling opportunities and cost efficiencies from the Direct Line integration. With a forward P/E of 9x and a solid capital‑return plan, Aviva positions itself as a value play amid broader market weakness.