Aviva acquired Direct Line in July last year and is making good progress with its integration.
AJ Bell head of markets Dan Coatsworth praised the turnaround under chief executive Dame Amanda Blanc.
He said: “The latest numbers from Aviva are a key milestone in Amanda Blanc’s transformation of the insurer amid record-breaking first-half operating profit which was ahead of forecasts.
“The integration of Direct Line is accelerating and, like a driver getting a clear run on the motorway, is ahead of schedule. The deal has had the desired effect of materially boosting Aviva’s exposure in general insurance.
“Having cut away the dead wood, by selling off non-core businesses in Europe and Asia, Aviva is now a higher growth, more focused business not weighed down as much by heavy demands on its capital.
“In hitting its 2026 targets a year early, Aviva is proving to be a victim of its own success, with the market adopting an attitude of ‘what have you done for me lately?’.
“There’s an element of that situation in the lacklustre share price reaction to the latest results. Signs of increased competition in commercial insurance will certainly be on investors’ minds.
“However, shareholders should still be happy, particularly given the healthy increase in the dividend and the confirmation Aviva is on track for its 2028 goals.”
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