Aviva expects to close Direct Line deal in mid-2025
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Expects to adjust 2026 forecasts after deal closes
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Expects to remain active in pension insurance deals
May 15 (Reuters) - Insurer Aviva's general premiums rose by 9% in the first quarter, it reported on Thursday, saying its deal to buy the Probitas platform and new business had driven growth in personal and commercial lines in Britain.
However, the company, which also provides wealth and retirement services, said its wealth business recorded net flows of 2.3 billion pounds ($3.06 billion), 14.8% lower than the same time a year ago.
Flows at the end of March were hit, it said, as a workplace scheme switched to another provider.
It also said its deal to buy smaller rival Direct Line would go ahead even after the UK's competition watchdog on Wednesday launched a review of the deal.
"The acquisition of Direct Line is firmly on track," CEO Amanda Blanc said in a statement. "We expect to complete the deal in the middle of the year."
Aviva also said it expected to reframe the group's 2026 targets after the deal closes, without giving further detail.
In recent years, companies seeking to offload pension scheme risks from their balance sheets have led to a boom in British pension insurance deals.
Aviva said it expects to remain active in bulk annuities - insurance for corporate defined benefit, or final salary, pension schemes - but that volumes were likely to be lower than in 2024 as it focuses on boosting margins.
In March 2024, it agreed an acquisition to re-enter the historic Lloyd's insurance market by buying insurance platform Probitas.
The company, which operates in Britain, Canada and Ireland, reported 2.9 billion pounds ($3.9 billion) in general insurance premiums for the quarter ended March 31.
It said its bulk purchase annuity volumes were broadly consistent with the same period last year at 1.3 billion pounds.
Aviva (AV.)
Direct Line (DLG)
