Aviva reports strong workplace growth but 'subdued' BPA activity

The insurer's results for the six months to 30 June 2025 showed a 22% rise in group operating profit and revealed that its insurance, wealth and retirement sales had increased 9% to £21.5bn during the period.

Aviva chief executive of insurance, wealth and retirement Doug Brown said the firm's wealth business had performed particularly well – with net flows growing 16% year-on-year to £5.8bn due to growing regular contributions in workplace pensions and continued momentum in the firm's platform business. Assets under management grew 6% to £209bn.

Brown said Aviva's workplace pensions business had won a total of 283 new schemes so far this year and noted member contributions had grown to £1bn each month.

Aviva said bulk-purchase annuity (BPA) volumes were 3% lower at £2bn across 43 deals, reflecting what it said was "subdued activity" in the BPA market with sales at £2bn. Despite this, it noted that, as of today's date (14 August) volumes for completed BPA schemes had risen to £3.1bn.

The firm said its performance during the first six months of the year had been supported by Aviva Clarity, its streamlined proposition for smaller schemes.

Aviva said: "In BPA we expect to remain active but disciplined, and we anticipate volumes for 2025 to be lower than 2024 reflecting the current market dynamics.

"We anticipate writing volumes over 2025-27 at similar levels to those achieved in aggregate over the last three years, although given the exceptional market conditions in 2024 those volumes may not be repeated, with our primary focus remaining on margins and internal rates of return (IRRs)."

The firm said sales of individual annuities were up 29%, with significant growth in open-market volumes.