The insurer said protection sales came to £172 million in the six months to 30 June, down 16% from £205 million in the same period of 2024. The downturn follows the £453 million purchase of AIG Life from Corebridge Financial in April last year, which prompted a consolidation of product lines in late 2024.
Annual premium equivalent (APE) for new protection business also slipped, with individual protection down 5% to £91 million and group protection falling 26% to £81 million. Lower intermediated sales were cited as the main factor in the individual market, while a particularly strong period for new schemes in early 2024 created a tough comparison for group business this year.
The figures mark a change from Aviva’s performance last year, when it reported a 42% jump in protection sales to £375 million, up from £264 million in 2023.
In contrast, the company’s health business delivered strong growth in the first half of 2025. In-force premiums rose 14% year-on-year to hit £1 billion, supported by increased demand from both business and individual customers. APE for new health business climbed 15% to £76 million, compared with £66 million in the same period last year. The segment’s combined ratio remained in the low 90s.
Operating profit for Aviva’s combined protection and health operations grew 24% to £86 million, up from £69 million a year earlier. Amanda Blanc, group chief executive officer, said: “Trading has been very good right across Aviva. We are the number one UK wealth player, with more than £200 billion of assets, and net flows are up 16%. In general insurance we remained disciplined, growing sales by 7%, and operating profit by 29%. Our general insurance operations now represent half of business unit operating profit. Our health business grew in-force premiums by 14% as more people and employers are attracted to the benefits of private medical insurance."
Looking to the future, the insurer pointed to its recently completed acquisition of Direct Line as a key driver of growth. Blanc added: "We completed the acquisition of Direct Line at the beginning of July, just six months after our recommended offer, and integration is well underway. The combined business is a UK market leader with over 21 million customers, or 4 in 10 adults, and we are confident the deal will contribute significantly to Aviva’s future growth."
