How Amanda Blanc turned Aviva around and what lies ahead
New chief executive Amanda Blanc reshaped Aviva, selling loss‑making units and buying Direct Line, sparking a sharp share‑price rally.
Aviva announced that its share price has risen more than 280 per cent since Amanda Blanc took over as chief executive, a turnaround driven by a series of divestments and high‑profile acquisitions.
When Blanc arrived in 2020, the insurer was still reeling from a series of failed leadership changes and a share price that had fallen 34.9 per cent in the previous year. The new boss immediately set about simplifying the business. She exited under‑performing European operations, including France, Italy and Poland, raising about £8bn, which was ploughed back into core markets and returned to shareholders.
With a leaner footprint, Blanc focused on the United Kingdom, Ireland and Canada, where Aviva already held strong positions in life and general insurance. In 2022 the group bought Succession Wealth for £385m to boost its pension‑wealth platform, and in 2024 added underwriting house Probitas for £242m, giving Aviva access to the Lloyd’s market for the first time in two decades.
The crowning move came in December 2024 when Aviva agreed to buy Direct Line for £3.7bn, instantly securing roughly a fifth of the UK motor‑insurance market.
Investors have responded positively: operating profit rose to £1.3bn, up from £1bn a year earlier, and both general‑insurance premiums and wealth‑management revenue grew by around 30 per cent. Aviva now serves 22 million UK customers, the second‑largest base after Lloyds, and its total shareholder return outperforms the FTSE 100 by a wide margin.
The Direct Line deal also gives Aviva a foothold in a segment that has struggled with pricing pressure and claims volatility. By integrating Direct Line’s digital distribution channels, Aviva hopes to modernise its motor‑insurance offering and cross‑sell life and savings products.
Despite the strong performance, challenges remain. Four of Aviva’s sixteen investment funds were flagged in February for under‑delivering, and the rise of autonomous vehicles threatens long‑term demand for personal motor cover. If driverless cars capture a larger share of the market, liability may shift from individuals to manufacturers, reshaping the risk profile of motor insurers.
Analysts say Blanc has largely completed the restructuring phase, but the next step will be to extract value from the new assets while navigating regulatory scrutiny and technological disruption. Should Blanc depart, the board believes a successor would inherit a platform ready for further growth rather than a business still mired in cleanup work.
In the meantime, Aviva’s focus will likely be on integrating Direct Line, expanding its digital sales tools, and leveraging the Lloyd’s access gained through Probitas to launch new specialty products.