REG - Aviva PLC - Update on Direct Line Capital Model

AvivaAnnouncement

05/01/2026 15:00

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RNS Number : 6971N  Aviva PLC  05 January 2026

 

 

 

 

 

5 January 2026

 

Aviva plc

Update on Direct Line Capital Model

 

 

Aviva plc notes the PRA's written notice published earlier today, approving
our request to revoke Direct Line's (DL's) Solvency II partial internal model
covering UK Insurance Limited and Churchill Insurance Company Limited.

 

From 31 December 2025, DL's solo entity capital requirements can now be
calculated using the Solvency II standard formula, and similarly DL can be
included in Aviva's Group Solvency Capital Requirement (SCR) using the
standard formula with adjustment. Although still prudent, this enables partial
diversification benefits between DL and Aviva to be recognised from 31
December 2025. Previously, using DL's partial internal model, none of these
diversification benefits could be recognised in Aviva's Group SCR.

 

This change in capital treatment is estimated to realise around £0.1bn of
capital synergies at 31 December 2025, adding c.2pp to Aviva's full year 2025
Group shareholder solvency ratio. A further update will be provided alongside
our full year results in early March, once the impacts are finalised.

 

Removing DL's partial internal model supports our plans to move DL's business
onto Aviva's internal model in due course, subject to PRA approval. We remain
on track to achieve this and to realise greater than £0.5bn of total capital
synergies by around the end of 2026, as outlined at our In Focus event in
November 2025.

 

-ends-

 

 Enquiries:
 Media:
 Andrew Reid         +44 (0)7800 694 276
 Sarah Swailes       +44 (0)7800 694 859
 Marion Fischer      +44 (0)7800 693 219

 Analysts:
 Greg Neilson        +44 (0)7800 694 564
 Joel von Sternberg  +44 (0)7384 231 238
 Michael O'Hara      +44 (0)7387 234 388

 

Notes to editors

·   We are the UK's leading diversified insurer and we operate in the UK,
Ireland and Canada. We also have international investments in India and China.

·   We help our 25.2 million customers make the most out of life, plan for
the future, and have the confidence that if things go wrong we'll be there to
put it right.

·   We have been taking care of people for more than 325 years, in line
with our purpose of being 'with you today, for a better tomorrow'. In 2024, we
paid £29.3 billion in claims and benefits to our customers.

·   Aviva is a Living Wage, Living Pension and Living Hours employer and
provides market-leading benefits for our people, including flexible working,
paid carers leave and equal parental leave. Find out more at
www.aviva.com/about-us/our-people

·   As at 30 June 2025, total Group assets under management at Aviva Group
were £419 billion and our estimated Solvency II shareholder capital surplus
as at 30 September 2025 was £7.0 billion. Our shares are listed on the London
Stock Exchange and we are a member of the FTSE 100 index.

·   For more details on what we do, our business and how we help our
customers, visit www.aviva.com/about-us

·   The Aviva newsroom at www.aviva.com/newsroom
(https://www.aviva.com/newsroom/) includes links to our spokespeople images,
podcasts, research reports and our news release archive. Sign up
(https://www.aviva.com/newsroom/get-our-latest-news-and-updates-by-email/)
(https://www.aviva.com/newsroom/get-our-latest-news-and-updates-by-email/) to
get the latest news from Aviva by email.

·   You can follow us on:

o  X: www.x.com/avivaplc

o  LinkedIn: www.linkedin.com/company/aviva-plc

o  Instagram: www.instagram.com/avivaplc

·   For the latest corporate films from around our business, subscribe to
our YouTube channel: www.youtube.com/user/aviva

 

Forward-looking statements

This announcement contains, and we may make other verbal or written,
'forward-looking statements' with respect to certain of Aviva's plans and
current goals and expectations. All statements other than statements of
historical facts included in this announcement may be forward-looking
statements.

By their nature, all forward-looking statements are subject to known and
unknown risks and uncertainty. Accordingly, there are or will be important
factors that could cause actual results - and Aviva's related plans,
expectations and targets - to differ materially from those indicated in these
statements. Forward looking statements should therefore be construed in light
of such aforementioned factors. Neither Aviva, nor any of its respective
associates or directors, officers or advisers, provides any representation,
assurance or guarantee that the occurrence of the events expressed or implied
in any forward-looking statements in this announcement will actually occur.

Forward-looking statements in this report are current only as of the date on
which such statements are made and readers are cautioned not to place undue
reliance on them. Such statements should be regarded as indicative and
illustrative only, and Aviva does not provide any representation, assurance or
guarantee that the occurrence of the events expressed or implied in any
forward-looking statements in this presentation will actually occur. Aviva
undertakes no obligation to update the forward-looking statements in this
report or any other forward-looking statements we may make, except as required
by any applicable laws or regulations.

Aviva plc is a company registered in England and Wales No. 2468686.

 

Registered office

80 Fenchurch Street

London

EC3M 4AE

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