Home / Business and Economy / Aviva Doubles Cost Savings, Unveils Aggressive 3-Year Growth Plan
Aviva Doubles Cost Savings, Unveils Aggressive 3-Year Growth Plan
13 Nov, 2025
Summary
- Aviva's annuity and equity release sales jumped 24% and 39% in Q3
- Aviva expects to generate £225 million in cost savings, nearly double its original estimate
- Aviva sets new 3-year targets for 11% annual earnings growth, 20%+ ROE, and £7 billion in cash remittances
In the third quarter of 2025, Aviva, the FTSE 100 insurance giant, reported a strong performance in its annuity and equity release businesses, with sales jumping 24% and 39% respectively. However, the company's overall results fell short of analyst forecasts, leading to a 4.39% decline in its share price on the day.
Despite the market's underwhelming reaction, Aviva had some positive news to share. The firm said it was on track to almost double its cost savings target following its acquisition of Direct Line earlier this year. Aviva now expects to generate £225 million in savings, nearly twice its original estimate.
Looking ahead, Aviva announced three new three-year targets, including an 11% compound annual growth rate in operating earnings per share through to 2028, a return on equity exceeding 20% by 2028, and over £7 billion in cumulative cash remittances between 2026 and 2028. The company also said it was on track to hit its group targets for next year a year early and has set higher ambitions for growth, capital returns, and profitability.
Aviva's wealth arm secured net flows of £8.3 billion during the quarter, taking assets under management to £224 billion. The company now expects to deliver around £2 billion in operating profit for the full year 2025.
