Aviva boss Amanda Blanc has urged the chancellor not to leak any intended tax changes in the weeks before his first budget.

Dame Amanda’s plea follows the instability caused by rumours allowed to circulate under his predecessor that she would cut tax-free pension lump sum withdrawals.

This led some clients of wealth companies to take cash from their pension, unnecessarily as the Treasury did not cut allowances.

Dame Amanda said John Healey had assured her that he would not allow leaks. “What we don’t want is for customers to make decisions that in the long run they regret when policies are not changed,” she said.

Jason Windsor, the CEO of Edinburgh-based Aberdeen Group, also told The Times that the UK government “needs to engage the industry properly” before the budget.

Representatives of Quilter and AJ Bell have also called for control of speculation that can create damaging uncertainty.

The pleas came as Dame Amanda said she was confident that Aviva would meet its three-year targets.

Announcing results for the half-year to the end of June, she said the insurance company was making “very good progress” with the integration of Direct Line which it acquired in July last year for £3.7 billion and had improved its profitability.

Group operating profit was up 24% to £1.3bn from £1.1bn last year and ahead of City expectations of a 17.5% rise. The board will pay an interim dividend of 14p per share, up 7%.

Total group assets under management were £479 billion as at 30 June. The group is seeking to deliver cost savings of £225 million by the end of 2028.

Dame Amanda said: “We have now achieved six consecutive years of excellent financial performance, with much more to come. We also continue to deliver for our shareholders.

“We are making very good progress with the integration of Direct Line. We have quickly improved Direct Line’s profitability, grown price comparison website sales, and maintained excellent levels of customer service. We are well on track to deliver all the financial benefits of the acquisition.

“We are confident that we will meet our three-year financial targets in 2028 and expect 75% of our earnings to be capital-light by that point.

“Beyond this, Aviva is in a great position to sustain strong earnings growth over the longer term, particularly in the high growth areas of Wealth, UK and Canada General Insurance, Global Corporate and Specialty, and Health and Protection.

“Our broad and now expanded range of products, 25 million strong customer base, market leading brand, and the rich and extensive data we have, are major competitive advantages which will drive our future growth.

“Together they represent a significant opportunity for Aviva to apply artificial intelligence to deliver an even better service to customers, meet more of our customers’ needs over their lifetime, and drive even more value for our shareholders. Aviva’s long-term prospects are very bright indeed.”

Market reaction

Chris Beauchamp, chief market analyst at investing and trading platform IG, said: “Today’s results cap the strongest run for Aviva in over a year, taking the shares to a fresh post-2008 high.

“The Direct Line acquisition continues to provide a new engine of growth, putting Aviva on a solid path for the rest of the year and beyond.”

Dan Coatsworth, head of markets at AJ Bell, said: “The latest numbers from Aviva are a key milestone in Amanda Blanc’s transformation of the insurer amid record-breaking first-half operating profit which was ahead of forecasts. 

“The integration of Direct Line is accelerating and, like a driver getting a clear run on the motorway, is ahead of schedule. The deal has had the desired effect of materially boosting Aviva’s exposure in general insurance. 

“Having cut away the dead wood, by selling off non-core businesses in Europe and Asia, Aviva is now a higher growth, more focused business not weighed down as much by heavy demands on its capital. In hitting its 2026 targets a year early, Aviva is proving to be a victim of its own success, with the market adopting an attitude of ‘what have you done for me lately?’. 

“There’s an element of that situation in the lacklustre share price reaction to the latest results. Signs of increased competition in commercial insurance will certainly be on investors’ minds.

“However, shareholders should still be happy, particularly given the healthy increase in the dividend and the confirmation Aviva is on track for its 2028 goals.”

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