Insurance group Aviva beat annual profit expectations and chief executive Amanda Blanc is forecasting “strong and reliable growth”.

It posted double-digit growth in its general insurance premiums in 2024, and said its planned £3.7 billion acquisition of smaller rival Direct Line was on track.

The company reported a 20% rise in operating profit to £1.77 billion for the year ended 31 December 31, above analysts’ average consensus of £1.71bn.

It said it is on track to more than double operating profit in is wealth business in the next two years after a 29% jump in 2024 to £129m from £100m in 2023.

It proposes a final dividend of 23.8p per share, making an total for the year of 35.7p, an increase of 7%, which is on top of a £300 million share buyback earlier in the year.

Shares closed 22p stronger at 546.8p.

Ms Blanc said: “2024 was an excellent year, right across Aviva. We made clear strategic progress and delivered another set of very good numbers, with higher sales, higher operating profit and a higher dividend.

“Over the last four and a half years we have completely transformed Aviva, built a track record of consistently strong results, and returned £10 billion to shareholders.

“Our success is built on delivering excellent customer service. We now have 17 million customers in the UK – more than any other insurer – and with our diverse range of products across insurance, wealth, and retirement, we’re serving more customer needs, which is fuelling growth throughout the business. 

“The proposed acquisition of Direct Line is on track and is a clear opportunity to accelerate our capital-light growth, deliver brilliant service to millions more customers, and support the wider development of the UK economy.

“Aviva is in great shape. We have clear trading momentum which is generating strong and reliable growth. We have increased our dividend, again, and are committed to growing it further.

“There is so much untapped potential for Aviva to go after and I have real confidence in our ability to unlock this. So I’m more excited about Aviva’s future than ever before, and I’m personally looking forward to delivering this next phase of progress.”