Aviva saw a 4% increase in health sales driven by greater demand from large corporates focused on improving employee wellbeing while protection new business dropped 8% as the recovery from the AIG Life UK purchase continued.
However, the SME health insurance market has proven more challenging for the insurer as last year’s increases in employer national insurance contributions (NICs) resulted in tightened purse strings.
This is according to the insurer’s CEO, Amanda Blanc (pictured), who was responding to a question from Health & Protection on the provider’s annual 2025 results call this morning.
Aviva also addressed rebuilding its protection business following an 8% fall in sales as it integrated AIG Life UK, an acquisition first announced in 2023, and the launch of an AI agent capable of taking claims calls later this year.
The results reveal Aviva’s health new business sales were 4% higher in 2025, hitting £144m, up from £138m in 2024.
The provider attributed this to continued momentum in large corporate business, partly offset by its retail and SME business.
In-force premiums reached more than £1bn, increasing 12% year-on-year, driven by strong new business, retention and pricing actions.
Health operating profit increased 9% to £72m, from £66m in 2024, driven by portfolio growth and a low-90s combined operating ratio, partly offset by investment in the business.
Strong growth
When asked about how the implementation of Sir Charlie Mayfield’s Keep Britain Working Review could help grow health sales and expanding on the performance of the health business, Blanc said: “We were involved with the Mayfield Review.
“I think there’s quite a lot going on in health, but what we’re seeing is strong growth in the corporate line.
“For example, Aviva in 2025, provided private medical insurance for all of our employees. You are seeing a greater demand for the more corporate businesses around wellbeing of their employees.
“But what we are seeing though, is in the SME space that following the National Insurance changes, that market has been a little bit more challenging. SMEs are prioritising how they’re spending their money in a slightly more challenging environment.
“It’s hard to predict what’s going to happen. It’s not really a very dynamic market.”
Blanc added that as one of the only providers in the UK covering health and protection, Aviva continues to look at how it connects the wellbeing proposition.
“We want to make sure that when SMEs or corporates are buying health and protection that they are making the most of the cover so you are getting people back into work more quickly using both the protection product and also the health product,” Blanc continued.
“We’re excited about the opportunities there to join those two areas.”
Focus on rebuild
But the results also revealed that Aviva’s protection new business sales decreased by 8% to £345m from £375m in 2024 as it consolidated propositions in the second half of 2024 following the acquisition from AIG.
Though it added its focus on value over volume supported higher new business margins, with a 4% increase in value of new business (VNB).
Protection operating profit increased by 97% to £132m from £67m in 2024 supported by a one-time integration benefit following the acquisition from AIG and less adverse assumption changes compared with 2024.
Elaborating on how the protection business fared on the call, chief financial officer Charlotte Jones revealed consolidations have occurred where Aviva and AIG Life have had similar products.
“In general, our focus is on rebuilding from that consolidated position and we will be pricing appropriately,” she added.
Launch of virtual claims agent
Looking ahead, Blanc also revealed details about the launch of a virtual agent to support its claims service.
“Most of our claims start on the phone,” Blanc explained.
“The plan is by the summer, we’ll have a virtual agent able to take the more simple claims calls from beginning to end.
“We’re really excited about that and we’re starting to see the benefits of that already.”
Developing digital skills
And despite this increased emphasis on AI, Blanc revealed the company is not changing its approach to the jobs market.
“We’ll employ 175 grads and apprentices this year,” Blanc explained.
“We are changing the type of people, the type of skills that we’re looking for in all of our big contact centres and sites.
“We’ve got something called a foundry which will allow people to retrain into digital skills and data science skills.”
Blanc maintained that as a good employer, the firm’s role is to ensure its workforce are prepared for the different skills they need in future.
“At any one point in time we’ve got 1,000 vacancies,” she continued. “We’re a growing business, so we’re looking forward to working with our local communities.
“I was in Sheffield recently. We’re working with the local schools and colleges there to encourage people who perhaps wouldn’t think of Aviva as a place to work because their parents have never worked at a place like that, to come and work for Aviva.
“That’s really successful.”
Operating profit up
According to the results, across the group profit after tax rose by 50% to £1.05bn, up from £705m.
Meanwhile operating profit rose 25% to £2.2bn in 2025, up from £1.8bn in 2024, including a £174m contribution from the July 2025 acquisition of Direct Line which delivered the £2bn operating profit target one year early.
