Aviva saw health sales fall by a third in the first half of the year.
This is according to the insurer’s H1 2026 results which revealed health new business sales dropped to £51m from £76m in the corresponding period of last year.
Maintaining rate discipline
Aviva attributed the decline to heightened pricing competition in the consumer and SME channels, where it has maintained rate discipline.
However, health operating profit rose 28% to £37m from £29m in H1 2025 which was driven by premium growth and a combined operating ratio in the low 90s .
Health in-force premiums were also up by 5%, caused by continued rating ahead of inflation and slowing market growth.
Group protection sales up, individual sales down
Turning to group protection, new business sales increased by 6% to £86m from £81m in the first half of 2025 supported by strong new business, particularly in Aviva’s large corporate segment.
Though this was partly offset by a 4% decrease in individual protection sales which fell to £87m from £91m in the first six months of the previous year. Protection sales overall grew 1% to hit £173m.
But the provider’s focus on value over volume supported higher new business margins, with a 7% increase in VNB (value of new business).
However, protection operating profit decreased by 14% to £49m from £57m in H1 2025 driven by adverse experience and investment in our propositions, partly offset by higher contractual service margin (CSM) releases.
Operating profit up
There was better news on operating profit across the group, however, as this rose 24% to £1.3bn from £1.06bn in the H1 2025. This was largely due to the performance of the general insurance businesses in the UK, Ireland and Canada.
The acquisition of Direct Line helped premiums increase by 42% to £5.9bn during the period.
Growth expected
Addressing the protection and health businesses specifically, Doug Brown, CEO Aviva Insurance, wealth and retirement, said: “In insurance, an increasing focus on employee protection and wellbeing from corporate clients helped sales in protection reach £173m.
“Despite a market slowdown, health sales were at £51m, with in-force premiums up 5% and a low-90s combined operating ratio.
“We expect to see growth in the insurance, wealth and retirement business to continue through the second half of the year as we invest further in our capital-light businesses.”
Amanda Blanc, group chief executive officer, added that Aviva is in a great position to sustain strong earnings growth over the longer term, with health and protection a high-growth area.
