Increase in first-quarter insurance premiums reported by Aviva after acquiring Probitas
Revamped Recap:
Aviva boosted its insurance premiums significantly in Q1 2025, following the takeover of underwriting syndicate Probitas. Premiums soared by 9% to a colossal £2.9 billion across the reported period, with UK and Ireland leading the charge at a whopping 12% increase. Personal lines surged by 8%, while commercial lines expanded an impressive 15%.
The stellar growth came from a mix of new business and Aviva's £242 million acquisition of Probitas in 2024, which paved the way for its return to the Lloyd's of London market after two decades. Additionally, the takeover of AIG's life insurance business shot up protection and health sales by 19%, to £126 million, and retirement sales by 4%, to £1.8 billion, thanks to an annuity sales boost from higher interest rates.
Aviva has also become a key player in bulk purchase annuity (BPA) deals, climbing to the top of the stack in 2024 with £7.8 billion BPA sales—a 42% year-over-year increase. The company expects similar volumes this year.
Here's a brief look at the backstory: Probitas maintains a solid position within the Lloyd's market and boasted top-quartile performance after the acquisition. Post-acquisition, there was a realignment, with Probitas CEO Ash Bathia and Managing Director Nick Bacon stepping down in July 2025. Matthew Washington, Aviva's Global, Corporate & Specialty Managing Director, took on the CEO role at Probitas alongside his existing responsibilities.
Stay tuned as the Competition and Markets Authority (CMA) is investigating whether Aviva's planned £3.7 billion acquisition of Direct Line will lead to a 'substantial lessening of competition' in the UK. The CMA will make its decision by July 10, 2025, and if the takeover goes ahead, the enlarged group will control about a fifth of the UK's home and insurance market.
Aviva shares were up 2.3% at 585.4p on late Thursday morning, marking an impressive 22% gain this year. If you're keen to dive deeper into the world of investing, we recommend checking out some DIY investing platforms like AJ Bell, Hargreaves Lansdown, interactive investor, InvestEngine, and Trading 212. Happy investing, folks!
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- In the realm of finance, Aviva's substantial investment in the acquisition of Probitas has led to a notable increase in insurance premiums, with a significant boost in mortgages' and business lines.
- Aviva, with its expanded portfolio, has made strategic moves in the market, becoming a leading player in bulk purchase annuity (BPA) deals, and also ventured into DIY investing platforms like AJ Bell, Hargreaves Lansdown, interactive investor, InvestEngine, and Trading 212, offering opportunities for individuals to invest.
- As Aviva continues to grow its business through strategic acquisitions such as Probitas and AIG's life insurance business, it's important to note that the Competition and Markets Authority (CMA) is currently investigating Aviva's planned £3.7 billion acquisition of Direct Line to ensure that it does not lead to a lessening of competition in the UK insurance market.
