Aviva pursues specialty lines growth after Direct Line deal
Aviva has identified specialty personal lines as a major growth area following the July 2025 purchase of Direct Line. The insurer argues this specific class of business represents a “big growth opportunity” that can help plug gaps in its current market share, especially in segments where the combined companies have traditionally been weak.
Financials show impact of Direct Line purchase
The insurer’s 2026 half‑year results confirm a sharp turnaround in its UK and Ireland personal lines portfolio. Gross written premium (GWP) jumped 98% to £3,679 million compared with the same period a year earlier, a surge driven almost entirely by the Direct Line acquisition.
The combined operating ratio (COR) improved to 93.1%, slightly better than the 93.9% recorded for H1 2025.
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The trading announcement notes that growth came from both the new assets and organic expansion. UK personal lines premiums grew substantially, reflecting the acquisition and growth in intermediated business, including the addition of the home partnership with Nationwide. Aviva assumed responsibility for the bank’s home and travel insurance contracts from RSA in late 2025.
Integration progress and savings
Chief executive of UK and Ireland general insurance Jason Storah described the financial turnaround at Direct Line as “really improved growth and significantly improved profitability.” He added that the Direct Line brand is now visible on price comparison websites following its launch in December 2024, helping to drive these results.
Aviva has already realized £100 million of savings from the deal, a figure expected to rise to £130 million by year‑end.
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Ramping up specialty personal lines
While the commercial lines portfolio saw a modest decline in GWP due to soft market conditions, the focus is shifting toward the specialty personal lines mix. This category includes Green Flag, Commercial Direct, and pet insurance.
Storah pointed out a clear disparity in market share between the combined Aviva and Direct Line books. The overall combined share exceeds 20%, while the specialty personal lines segment currently sits around 6% to 7%. With 22 million customers in the UK, there is significant potential to sell products the firm has historically ignored. “Historically Aviva has never sold any of them pet insurance. Well, a lot of them have pet insurance,” he explained.
