Half Year 2026 Aviva PLC Earnings Call

August 14, 2026

Speaker #1: Okay, good morning everyone, and thank you for joining us today for our half-year results presentation. I'm going to start by sharing a few key highlights before Charlotte takes you through the results in more detail.

Speaker #1: Then we'll cover why we are so confident in Aviva's long-term potential, and as always, we will open for questions. So let me begin with the key messages.

Speaker #1: Aviva has delivered another excellent performance in our first half of 2026. Once again, extending our track record of strong, profitable growth. We continue to accelerate toward 75% capital light, unlocking the potential of direct line, and building further momentum in our number-one wealth business.

Speaker #1: All of this underpins our confidence in delivering the ambitious, 3-year targets. And our diversified model is a key enabler for long-term success, which is why I am equally confident in our ability to sustain strong earnings growth well beyond 2028.

Speaker #1: Okay, good morning, everyone, and thank you for joining us today for our half-year results presentation. I'm going to start by sharing a few key highlights before Charlotte takes you through the results in more detail.

Amanda Blanc: Okay, good morning, everyone, and thank you for joining us today for our H1 results presentation. I am going to start by sharing a few key highlights before Charlotte takes you through the results in more detail. Then we will cover why we are so confident in Aviva's long-term potential, and as always, we will open for questions. Let me begin with the key messages. Aviva has delivered another excellent performance in our H1 2026, once again extending our track record of strong, profitable growth. We continue to accelerate towards 75% capital light, unlocking the potential of Direct Line, and building further momentum in our number one wealth business. All of this underpins our confidence in delivering the ambitious three-year targets.

Amanda Blanc: Okay, good morning, everyone, and thank you for joining us today for our H1 Results Presentation. I am going to start by sharing a few key highlights before Charlotte takes you through the results in more detail. Then we will cover why we are so confident in Aviva's long-term potential, and as always, we will open for questions. Let me begin with the key messages. Aviva has delivered another excellent performance in our H1 2026, once again extending our track record of strong, profitable growth. We continue to accelerate towards 75% capital light, unlocking the potential of Direct Line, and building further momentum in our number one wealth business. All of this underpins our confidence in delivering the ambitious three-year targets.

Speaker #1: Now, let's get to the results. As you can see, it's been a great first half. Operating profit is up 24%, with strong double-digit growth in operating earnings per share.

Speaker #1: Then we'll cover why we are so confident in Aviva's long-term potential and, as always, we will open for questions. So, let me begin with the key messages.

Speaker #1: And we are driving higher returns, with IFRS return on equity above 20%. For shareholders, we completed the latest share buyback last month. And today, we are announcing an interim dividend of 14 pence per share up 7%.

Speaker #1: Aviva has delivered another excellent performance in our first half of 2026, once again extending our track record of strong, profitable growth. We continue to accelerate towards 75% capital-light, unlocking the potential of Direct Line, and building further momentum in our number one wealth business.

Speaker #1: We are also stepping up for our 25 million customers. We're serving more of their needs than ever, and delivering a fantastic customer experience. These results reflect strong delivery right across our business, and our excellent progress on direct line.

Speaker #1: All of this underpins our confidence in delivering the ambitious three-year targets, and our diversified model is a key enabler for long-term success. This is why I am equally confident in our ability to sustain strong earnings growth well beyond 2028.

Amanda Blanc: Our diversified model is a key enabler for long-term success, which is why I am equally confident in our ability to sustain strong earnings growth well beyond 2028. Now let us get to the results. As you can see, it has been a great H1. Operating profit is up 24%, with strong double-digit growth in operating EPS. We are driving higher returns with IFRS return on equity above 20%. For shareholders, we completed the latest share buyback last month. Today, we are announcing an interim dividend of 14 pence per share, up 7%. We are also stepping up for our 25 million customers. We are serving more of their needs than ever and delivering a fantastic customer experience. These results reflect strong delivery right across our business and our excellent progress on Direct Line.

Speaker #1: Behind every number in these results is a colleague making a difference for customers. I've been really fortunate to work with many talented teams throughout my career.

Speaker #1: Now, let's get to the results. As you can see, it's been a great first half. Operating profit is up 24%, with strong double-digit growth in operating earnings per share.

Speaker #1: And I genuinely believe that Aviva has the best people in the industry. Because we are the leading player, we attract and retain some of the best talent, and I'd like to thank the team for their commitment, skill, and hard work, and for everything that they do to deliver for our customers and shareholders every single day.

Speaker #1: Turning now to our track record. Over the last 3 years, we have transformed Aviva. Year after year, we have delivered consistent growth, stronger profitability, and higher returns.

Speaker #1: We are also stepping up for our 25 million customers. We're serving more of their needs than ever and delivering a fantastic customer experience. These results reflect strong delivery right across our business, and our excellent progress on Direct Line.

Speaker #1: And we have exceeded 2 full sets of targets along the way. Today's results build on that track record and keep us firmly on course to deliver our 3-year targets and create value well beyond them.

Speaker #1: So before I hand over to Charlotte, let me pause on why we are so confident about Aviva's potential. The answer is simple: it's the strength of our model.

Speaker #1: Behind every number in these results is a colleague making a difference for customers. I've been really fortunate to work with many talented teams throughout my career.

Amanda Blanc: Behind every number in these results is a colleague making a difference for customers. I have been really fortunate to work with many talented teams throughout my career, and I genuinely believe that Aviva has the best people in the industry. Because we are the leading player, we attract and retain some of the best talent, and I would like to thank the team for their commitment, skill, and hard work, and for everything that they do to deliver for our customers and shareholders every single day. Turning now to our track record. Over the last two years, we have transformed Aviva. Year after year, we have delivered consistent growth, stronger profitability, and higher returns. We have exceeded two full sets of targets along the way. Today's results build on that track record and keep us firmly on course to deliver our three-year targets and create value well beyond them.

Speaker #1: We have a diversified range of businesses, with leading positions in attractive markets. That gives us earnings resilience and plenty of growth opportunities, which no other UK insurer can match.

Speaker #1: And as we continue to shift toward capital light, we are generating even stronger returns. We have a real customer advantage, with a leading franchise in UK financial services, the number-one trusted brand, and a broad range of products that meet customer needs.

Speaker #1: Turning now to our track record. Over the last two years, we have transformed Aviva. Year after year, we have delivered consistent growth, stronger profitability, and higher returns.

Speaker #1: That means we have a real opportunity to do more for our customers who already choose Aviva. We have scale, with game-changing amounts of proprietary data and strong technology and digital foundations.

Speaker #1: And we have exceeded two full sets of targets along the way. Today's results build on that track record and keep us firmly on course to deliver our three-year targets and create value well beyond them.

Amanda Blanc: Today's results build on that track record and keep us firmly on course to deliver our three-year targets and create value well beyond them. Before I hand over to Charlotte, let me pause on why we are so confident about Aviva's potential. The answer is simple. It is the strength of our model. We have a diversified range of businesses with leading positions in attractive markets. That gives us earnings resilience and plenty of growth opportunities, which no other UK insurer can match. As we continue to shift towards capital light, we are generating even stronger returns. We have a real customer advantage with a leading franchise in UK financial services, the number one trusted brand, and a broad range of products that meet customer needs.

Speaker #1: And this means we have a significant AI opportunity, where we are already making progress. These are powerful strengths in their own right. But what really matters is how they come together.

Speaker #1: So, before I hand over to Charlotte, let me pause on why we are so confident about Aviva's potential. The answer is simple: it's the strength of our model.

Amanda Blanc: Before I hand over to Charlotte, let me pause on why we are so confident about Aviva's potential. The answer is simple. It is the strength of our model. We have a diversified range of businesses with leading positions in attractive markets. That gives us earnings resilience and plenty of growth opportunities, which no other UK insurer can match. As we continue to shift towards capital light, we are generating even stronger returns. We have a real customer advantage with a leading franchise in UK financial services, the number one trusted brand, and a broad range of products that meet customer needs. That means we have a real opportunity to do more for our customers who already choose Aviva. We have scale, with game-changing amounts of proprietary data and strong technology and digital foundations. This means we have a significant AI opportunity where we are already making progress.

Speaker #1: That's why we are so confident in Aviva's opportunity ahead, and I'll come back to share more on how we are thinking about that a bit later.

Speaker #1: We have a diversified range of businesses with leading positions in attractive markets. That gives us earnings resilience and plenty of growth opportunities, which no other UK insurer can match.

Speaker #1: But first, let me hand over to Charlotte to take you through the results in more detail.

Speaker #2: Thanks, Amanda. And good morning, everyone. The first half of 2026 was strong for Aviva, once again, as we continue our growth momentum. Operating profit was up 24% to 1.3 billion pounds.

Speaker #1: And as we continue to shift towards capital-light, we are generating even stronger returns. We have a real customer advantage, with a leading franchise in UK financial services, the number one trusted brand, and a broad range of products that meet customer needs.

Speaker #2: Which translates to an operating EPS growth of 10%, and an IFRS return on equity of 20.3%. Cash remittances were up 47% to 1.5 billion pounds.

Speaker #1: That means we have a real opportunity to do more for our customers who already choose Aviva. We have scale, with game-changing amounts of proprietary data, and strong technology and digital foundations.

Amanda Blanc: That means we have a real opportunity to do more for our customers who already choose Aviva. We have scale, with game-changing amounts of proprietary data and strong technology and digital foundations. This means we have a significant AI opportunity where we are already making progress. These are powerful strengths in their own right. What really matters is how they come together. That is why we are so confident in Aviva's opportunity ahead. I will come back to share more on how we are thinking about that a bit later. First, let me hand over to Charlotte to take you through the results in more detail.

Speaker #2: Our solvency ratio of 176% is toward the top end of our working range, and we expect it to be in the high 180s by the end of the year.

Speaker #1: And this means we have a significant AI opportunity, where we are already making progress. These are powerful strengths in their own right, but what really matters is how they come together.

Amanda Blanc: These are powerful strengths in their own right. What really matters is how they come together. That is why we are so confident in Aviva's opportunity ahead. I will come back to share more on how we are thinking about that a bit later. First, let me hand over to Charlotte to take you through the results in more detail.

Speaker #2: Underlying operating capital generation increased 14% to 812 million pounds, and within the businesses, our general insurance combined ratio improved 1.3 points to 93.3%. And wealth net flows were up 32% to 7.6 billion.

Speaker #1: That's why we are so confident in Aviva's opportunity ahead. I'll come back to share more on how we are thinking about that a bit later.

Speaker #1: But first, let me hand over to Charlotte to take you through the results in more detail.

Speaker #2: Thanks, Amanda. And good morning, everyone. The first half of 2026 was strong for Aviva once again, as we continue our growth momentum. Operating profit was up 24% to £1.3 billion, which translates to operating EPS growth of 10% and an IFRS return on equity of 20.3%.

Charlotte Jones: Thanks, Amanda, and good morning, everyone. The H1 of 2026 was strong for Aviva once again, as we continue our growth momentum. Operating profit was up 24% to GBP 1.3 billion, which translates to an operating EPS growth of 10% and an IFRS return on equity of 20.3%. Cash remittances were up 47% to GBP 1.5 billion. Our solvency ratio of 176% is towards the top end of our working range, and we expect it to be in the high 180s by the end of the year. Underlying operating capital generation increased 14% to GBP 812 million. Within the businesses, our general insurance combined ratio improved 1.3 points to 93.3%. Wealth net flows were up 32% to GBP 7.6 billion. I will now unpack the results in a bit more detail, business by business, starting with general insurance. In the UK and Ireland, premiums grew 42% to GBP 5.9 billion.

Speaker #2: I'll now unpack the results in a bit more detail, business by business. Starting with general insurance. In the UK and Ireland, premiums grew 42% to 5.9 billion pounds.

Speaker #2: Now, a large component of this was the addition of direct line, reported as part of UK personal lines, where we saw premiums nearly double in size.

Speaker #2: Cash remittances were up 47% to £1.5 billion. Our solvency ratio of 176% is towards the top end of our working range, and we expect it to be in the high 180s by the end of the year.

Speaker #2: And we've made great progress on the integration and performance turnaround of direct line. Written margins are improving, and we have returned to policy growth in motor PCW.

Speaker #2: Commercial lines trading in Q2 was a clear improvement on Q1. We traded well in a tough environment, with strong April renewals. Premiums were down just 1% in the discrete quarter.

Speaker #2: Underlying operating capital generation increased 14% to £812 million, and within the businesses, our general insurance combined ratio improved 1.3 points to 93.3%. Wealth net flows were up 32% to £7.6 billion.

Speaker #2: Now, let me give you a little more color. Mid-market is up 1% year to date. Benefiting from high retention, which is close to 90%, and strong new business.

Speaker #2: Digital improved on Q1, but is still a little lower than last year. And we continue to take deliberate portfolio actions on certain MGAs. Probitas, which we are rebranding to Aviva Syndicates, continues to grow.

Speaker #2: I'll now unpack the results in a bit more detail, business by business, starting with General Insurance. In the UK and Ireland, premiums grew 42% to £5.9 billion.

Charlotte Jones: I will now unpack the results in a bit more detail, business by business, starting with general insurance. In the UK and Ireland, premiums grew 42% to GBP 5.9 billion. A large component of this was the addition of Direct Line, reported as part of UK personal lines, where we saw premiums nearly double in size. We have made great progress on the integration and performance turnaround of Direct Line. Written margins are improving, and we have returned to policy growth in motor PCW. Commercial lines trading in Q2 was a clear improvement on Q1. We traded well in a tough environment with strong April renewals. Premiums were down just 1% in the discrete quarter.

Speaker #2: Now, a large component of this was the addition of Direct Line, reported as part of UK Personal Lines, where we saw premiums nearly double in size.

Charlotte Jones: A large component of this was the addition of Direct Line, reported as part of UK personal lines, where we saw premiums nearly double in size. We have made great progress on the integration and performance turnaround of Direct Line. Written margins are improving, and we have returned to policy growth in motor PCW. Commercial lines trading in Q2 was a clear improvement on Q1. We traded well in a tough environment with strong April renewals. Premiums were down just 1% in the discrete quarter. Let me give you a little more color. Mid-market is up 1% year to date, benefiting from high retention, which is close to 90%, and strong new business. Digital improved on Q1, but is still a little lower than last year. We continue to take deliberate portfolio actions on certain MGAs.

Speaker #2: Largely driven by the 9 new classes that we have launched in Lloyd's since the acquisition. And in GCS more broadly, Q3 trading was significantly improved, though as expected, year-to-date premiums are lower as conditions remain competitive.

Speaker #2: And we've made great progress on the integration and performance turnaround of Direct Line. Written margins are improving, and we have returned to policy growth in motor PCW.

Speaker #2: In terms of profitability, the UK and Ireland combined ratio is a strong 93.4%. This is a 1.1-point improvement, reflecting the earned-through of pricing discipline, along with some favorable weather and prior year development.

Speaker #2: Commercial lines trading in Q2 was a clear improvement on Q1. We traded well in a tough environment, with strong April renewals. Premiums were down just 1% in the discrete quarter.

Speaker #2: Now, let me give you a little more color. Mid-market is up 1% year to date, benefiting from high retention—which is close to 90%—and strong new business.

Charlotte Jones: Let me give you a little more color. Mid-market is up 1% year to date, benefiting from high retention, which is close to 90%, and strong new business. Digital improved on Q1, but is still a little lower than last year. We continue to take deliberate portfolio actions on certain MGAs. Probitas, which we are rebranding to Aviva Syndicates, continues to grow, largely driven by the nine new classes that we have launched in Lloyd's since the acquisition. In GCS more broadly, Q3 trading was significantly improved, though, as expected, year to date premiums are lower as conditions remain competitive. In terms of profitability, the UK and Ireland combined ratio is a strong 93.4%.

Speaker #2: Overall, operating profit for the UK and Ireland grew 50% to 643 million pounds. Premiums in Canada were up 3% in constant currency, within this personal lines were up 4%, as we secured pricing increases across property and auto.

Speaker #2: Digital improved in Q1, but is still a little lower than last year. We continue to take deliberate portfolio actions on certain MGAs. Probitas, which we are rebranding to Aviva Syndicates, continues to grow.

Charlotte Jones: Probitas, which we are rebranding to Aviva Syndicates, continues to grow, largely driven by the nine new classes that we have launched in Lloyd's since the acquisition. In GCS more broadly, Q3 trading was significantly improved, though, as expected, year to date premiums are lower as conditions remain competitive. In terms of profitability, the UK and Ireland combined ratio is a strong 93.4%. This is a 1.1 point improvement, reflecting the earn through of pricing discipline, along with some favorable weather and prior year development. Overall, operating profit for the UK and Ireland grew 50% to GBP 643 million. Premiums in Canada were up 3% in constant currency. Within this, personal lines were up 4% as we secured pricing increases across property and auto, despite lower volumes due to the impact of portfolio actions taken in Alberta during the H2 of 2025.

Speaker #2: Despite lower volumes due to the impact of portfolio actions taken in Alberta during the second half of 2025. We also continue to make good progress with the partnership that we announced last year, with President's choice insurance.

Speaker #2: Largely driven by the nine new classes that we have launched in Lloyd's since the acquisition. And in GCS more broadly, Q3 trading was significantly improved, though as expected, year-to-date premiums are lower as conditions remain competitive.

Speaker #2: Commercial lines grew 2% due to some scheme wins within GCS, which more than offset the softer rating environment. And the undiscounted core was almost 2 points better, reflecting better weather experience compared with the elevated activity in the previous year.

Charlotte Jones: This is a 1.1 point improvement, reflecting the earn through of pricing discipline, along with some favorable weather and prior year development. Overall, operating profit for the UK and Ireland grew 50% to GBP 643 million. Premiums in Canada were up 3% in constant currency. Within this, personal lines were up 4% as we secured pricing increases across property and auto, despite lower volumes due to the impact of portfolio actions taken in Alberta during the H2 of 2025.

Speaker #2: So first half operating profit was up 22% to 262 million pounds. And we continue to invest in our technology and our supply chain, through a combination of insourcing and deepening partnerships to increase performance.

Speaker #2: Overall, operating profit for the UK and Ireland grew 50% to £643 million. Premiums in Canada were up 3% in constant currency; within this, personal lines were up 4%, as we secured pricing increases across property and auto.

Speaker #2: Now, while first half weather experience was favorable, you'll have seen in the news since the end of June there have been a lot of there have been a number of weather events across Canada.

Speaker #2: Despite lower volumes due to the impact of portfolio actions taken in Alberta during the second half of 2025, we also continue to make good progress with the partnership that we announced last year with President's Choice Insurance.

Speaker #2: And although it's still early days, we now expect to be above our weather budget for the quarter. That said, Q3 is typically the more active cap season, and so it's built into our expectations.

Charlotte Jones: We also continue to make good progress with the partnership that we announced last year with PC Financial Insurance. Commercial lines grew 2% due to some scheme wins within GCS, which more than offset the softer rating environment. The undiscounted COR was almost 2 points better, reflecting better weather experience compared with the elevated CAT activity in the previous year. So H1 operating profit was up 22% to GBP 262 million. We continue to invest in our technology and our supply chain through a combination of insourcing and deepening partnerships to increase performance. While H1 weather experience was favorable, you will have seen in the news since the end of June, there have been a number of weather events across Canada. Although it is still early days, we now expect to be above our weather budget for the quarter.

Speaker #2: Commercial lines grew 2%, due to some scheme wins within GCS, which more than offset the softer rating environment. And the undiscounted core was almost 2 points better, reflecting better weather experience compared with the elevated CAT activity in the previous year.

Speaker #2: Now, looking at the group overall, we've made fantastic progress, improving our headline undiscounted core by more than 2 points over the last 2 years.

Speaker #2: And we're on track for our full year 2026 guidance. Now, I want to take a moment to unpack our core development and outlook for you.

Speaker #2: So, first-half operating profit was up 22% to £262 million. And we continue to invest in our technology and our supply chain, through a combination of insourcing and deepening partnerships to increase performance.

Speaker #2: Structurally, we expect favorable PYD going forward. Driven by the IFRS risk adjustments and maintaining balance sheet strength. So taking these in turn, firstly, the risk adjustment increases the reserve amount through underlying core, and subsequently unwinds through PYD.

Speaker #2: Now, while first half weather experience was favorable, you'll have seen in the news that since the end of June, there have been a lot of there have been a number of weather events across Canada.

Speaker #2: Now, while these effects largely net off in the headline core, they contribute both to a favorable PYD and a structurally higher underlying core by around 1 to 2 points.

Speaker #2: And although it's still early days, we now expect to be above our weather budget for the quarter. That said, Q3 is typically the more active CAT season, and so it's built into our expectations.

Charlotte Jones: That said, Q3 is typically the more active CAT season, so it is built into our expectations. Looking at the group overall, we have made fantastic progress improving our headline undiscounted COR by more than 2 points over the last two years, and we are on track for our full year 2026 guidance. I want to take a moment to unpack our COR development and outlook for you. Structurally, we expect favorable PYD going forward, driven by the IFRS risk adjustment and maintaining balance sheet strength. So taking these in turn. Firstly, the risk adjustment increases the reserve amount through underlying COR and subsequently unwinds through PYD. While these effects largely net off in the headline COR, they contribute both to a favorable PYD and a structurally higher underlying COR by around 1 to 2 points.

Speaker #2: Secondly, in terms of balance sheet strength, we reserve to best estimate, but that is still a range. So given ongoing uncertainty from inflationary dynamics to geopolitical tensions and, of course, the addition of direct line, we are reserving toward the upper end of this best estimate range.

Speaker #2: Now, looking at the group overall, we've made fantastic progress, improving our headline undiscounted core by more than two points over the last two years.

Speaker #2: And we're on track for our full-year 2026 guidance. Now, I want to take a moment to unpack our core development and outlook for you.

Speaker #2: And we have maintained this strength over the period. But by maintaining balance sheet strength, favorable PYD is expected to come. On top of these recycling effects in the first half of 2026, there has also been some favorable experience on prior year claims and weather.

Speaker #2: Structurally, we expect favorable PYD going forward, driven by the IFRS risk adjustment and maintaining balance sheet strength. So, taking these in turn, firstly, the risk adjustment increases the reserve amounts through underlying core and subsequently unwinds through PYD.

Speaker #2: Benefiting the headline core. And the underlying core was negatively impacted by some large losses and other one-off effects. Our strong pricing growing operating leverage significant direct line opportunities and robust balance sheet give us confidence in the moving to insurance, wealth, and retirement, starting with wealth.

Speaker #2: Now, while these effects largely net off in the headline core, they contribute both to a favorable PYD and a structurally higher underlying core by around 1 to 2 points.

Speaker #2: Secondly, in terms of balance sheet strength, we reserve to best estimate, but that is still a range. So, given ongoing uncertainty from inflationary dynamics to geopolitical tensions and, of course, the addition of Direct Line, we are reserving towards the upper end of this best estimate range.

Charlotte Jones: Secondly, in terms of balance sheet strength, we reserve to best estimate, but that is still a range. Given ongoing uncertainty from inflationary dynamics to geopolitical tensions and of course, the addition of Direct Line, we are reserving towards the upper end of this best estimate range. We have maintained this strength over the period. By maintaining balance sheet strength, favorable PYD is expected to come. On top of these recycling effects in H1 2026, there has also been some favorable experience on prior year claims and weather, benefiting the headline COR. The underlying COR was negatively impacted by some large losses and other one-off effects. Our strong pricing, growing operating leverage, significant Direct Line opportunities, and robust balance sheet give us confidence in the outlook. Moving to Insurance, Wealth, and Retirement.

Speaker #2: Where we have the largest player in the UK and have reached over 260 billion pounds of assets. Net flows increased by an excellent 32% to 7.6 billion pounds, representing 7% of opening AUM on an annual basis.

Speaker #2: And we have maintained this strength over the period. By maintaining balance sheet strength, favorable PYD is expected to come. On top of these recycling effects, in the first half of 2026, there has also been some favorable experience on prior year claims and weather.

Speaker #2: This was driven by strong performance across the board, workplace net flows up regular contributions of more than a billion pounds each month. We're also onboarding new schemes, including 1.5 billion pounds from the first of the Mercer schemes.

Speaker #2: Benefiting the headline core, and the underlying core was negatively impacted by some large losses and other one-off effects. Our strong pricing, growing operating leverage, significant direct line opportunities, and robust balance sheet give us confidence in the outlook.

Speaker #2: Our advisor platform performs strongly, with net flows up 17%, including high demand for the onshore bond that we launched last year. And in direct wealth, our customer base grew by almost a third to nearly 120,000 customers, with strong growth coming from across Aviva's existing customer base.

Speaker #2: Now, moving to Insurance, Wealth, and Retirement, starting with Wealth, where we are the largest player in the UK and have reached over £260 billion of assets.

Charlotte Jones: Starting with Wealth, where we are the largest player in the UK and have reached over GBP 260 billion of assets. Net flows increased by an excellent 32% to GBP 7.6 billion, representing 7% of opening AUM on an annual basis. This was driven by strong performance across the board. Workplace net flows up 36% with continued regular contributions of more than GBP 1 billion each month. We are also onboarding new schemes, including GBP 1.5 billion from the first of the Mercer schemes. Our Adviser Platform performed strongly with net flows up 17%, including high demand for the Onshore Bond that we launched last year. In direct wealth, our customer base grew by almost a third to nearly 120,000 customers, with strong growth coming from across Aviva's existing customer base.

Speaker #2: AUM in our direct business is up 14% to 5 billion, and we continue to invest in developing this proposition to drive organic growth. Overall, wealth operating profit was up 34%, with our operating margin improving by 0.7 basis points as the business grows.

Speaker #2: Net flows increased by an excellent 32% to £7.6 billion, representing 7% of opening AUM on an annual basis. This was driven by strong performance across the board.

Speaker #2: We have the benefit of a leading scale, sorry, leading scale, life-time offerings and customer opportunities, and we are fully on track to meet our ambition of 280 million pounds of operating profit by 2027.

Speaker #2: Workplace net flows are up 36%, with continued regular contributions of more than £1 billion each month. We're also onboarding new schemes, including £1.5 billion from the first of the Mercer schemes.

Speaker #2: Now, moving to our insurance businesses, starting with health. In force premiums up 5%, and we maintained a low 90s core. Operating profit was up 28% to 37 million pounds.

Speaker #2: Now, the market has been affected by slowing growth, driven by the SME and consumer challenge. Channels. Life's growth is down from about 6.5% back in 2023 to less than 2% in the first quarter of this year.

Charlotte Jones: AUM in our direct business is up 14% to GBP 5 billion, and we continue to invest in developing this proposition to drive organic growth. Overall, wealth operating profit was up 34%, with our operating margin improving by 0.7 basis points as the business grows. We have the benefit of a leading scale, lifetime offerings, and customer opportunities, and we are fully on track to meet our ambition of GBP 280 million of operating profit by 2027. Now moving to our insurance businesses, starting with health. In-force premiums up 5%, and we maintained a low 90s COR. Operating profit was up 28% to GBP 37 million. The market has been affected by slowing growth driven by the SME and consumer channels. Live growth is down from about 6.5% back in 2023 to less than 2% in the Q1 of this year.

Speaker #2: 14% to £5 billion, and we continue to invest in developing this proposition to drive organic growth. Overall, Wealth operating profit was up 34%, with our operating margin improving by 0.7 basis points as the business grows.

Speaker #2: And as a result of this, we now expect operating profit to be around 90 million pounds for 2026. So despite continued double-digit profit growth over the last 3 years, this will fall slightly short of our aim to reach 100 million pounds this year.

Speaker #2: We have the benefit of a leading scale—sorry, leading-scale lifetime offerings and customer opportunities. And we are fully on track to meet our ambition of £280 million of operating profit by 2027.

Speaker #2: We continue to see health as a critical part of our customer proposition, with long-term growth drivers. In protection, sales up 1%, with stronger performance in group protection.

Speaker #2: Now, moving to our insurance businesses, starting with Health. In-force premiums were up 5%, and we maintained a low 90s COR. Operating profit was up 28% to £37 million.

Speaker #2: Margins have also improved by 40 basis points, as we focus on delivering value. Protection operating profit was 14% lower, driven by adverse experience variances and investment in the business.

Speaker #2: Now, the market has been affected by slowing growth, driven by the SME and consumer channels. Life's growth is down from about 6.5% back in 2023 to less than 2% in the first quarter of this year.

Speaker #2: And lastly, we're making further investments across both these businesses. For example, we're pleased to launch we were pleased to launch our new wellbeing proposition, which is a combined health and protection solution.

Speaker #2: As a result of this, we now expect operating profit to be around £90 million for 2026. So, despite continued double-digit profit growth over the last three years, this will fall slightly short of our aim to reach £100 million this year.

Charlotte Jones: As a result of this, we now expect operating profit to be around GBP 90 million for 2026. Despite continued double-digit profit growth over the last three years, this will fall slightly short of our aim to reach GBP 100 million this year. We continue to see health as a critical part of our customer proposition with long-term growth drivers. In protection, sales up 1% with stronger performance in group protection. Margins have also improved by 40 basis points as we focus on delivering value. Protection operating profit was 14% lower, driven by adverse experience variances and investment in the business. Lastly, we are making further investments across both these businesses. For example, we were pleased to launch our new wellbeing proposition, which is a combined health and protection solution for large corporates with SME to come later this year.

Speaker #2: Four large corporates with SME to come later this year. In retirement, we wrote 1.1 billion pounds of BPA in a less active and more competitive market.

Speaker #2: Trading has been positive since the end of June, and year-to-date volumes are now 1.9 billion pounds. The half year we achieved an IRR of 18%, well above our low-teens guidance.

Speaker #2: We continue to see health as a critical part of our customer proposition, with long-term growth drivers. In protection, sales were up 1%, with stronger performance in group protection.

Speaker #2: Supported by our pricing discipline and mix of smaller schemes with higher returns. This business has also been written a relatively low capital strain, and we have provided some color on the IRR calculations in the appendix to the slides.

Speaker #2: Margins have also improved by 40 basis points as we focus on delivering value. Protection operating profit was 14% lower, driven by adverse experience variances and investment in the business.

Speaker #2: Individual annuity sales up 11% to 865 million pounds, supported by the launch of our new guaranteed fixed income plan last year. Operating profit was up 2%, as we benefited from higher CSM releases and asset optimization.

Speaker #2: And lastly, we're making further investments across both these businesses. For example, we were pleased to launch our new wellbeing proposition, which is a combined health and protection solution.

Speaker #2: Four large corporates, with SME to come later this year. In Retirement, we wrote £1.1 billion of BPA in a less active and more competitive market.

Speaker #2: We remain active in retirement, and we'll continue to be disciplined in the competitive environment. Now, turning to costs and efficiency. The ratios have improved across the group, due to acquisitions, growth in the business, and our focus on efficiency.

Charlotte Jones: In Retirement, we wrote GBP 1.1 billion of BPA in a less active and more competitive market. Trading has been positive since the end of June, and year to date volumes are now GBP 1.9 billion. The H1 we achieved an IRR of 18%, well above our low teens guidance, supported by our pricing discipline, a mix of smaller schemes with higher returns. This business has also been written at relatively low capital strain, and we have provided some color on the IRR calculations in the appendix to the slides. Individual annuity sales were up 11% to GBP 865 million, supported by the launch of our new Guaranteed Fixed Income Plan last year. Operating profit was up 2% as we benefited from higher CSM releases and asset optimization. We remain active in retirement and will continue to be disciplined in the competitive environment. Now turning to costs and efficiency.

Speaker #2: Trading has been positive since the end of June, and year-to-date volumes are now 1.9 billion pounds. For the half year, we achieved an IRR of 18%, well above our low-teens guidance.

Speaker #2: For example, our cost asset ratio in IWR has improved by more than 4 basis points over the last 12 months alone. Demonstrating strong operating leverage.

Speaker #2: Supported by our pricing discipline and a mix of smaller schemes with higher returns. This business has also been written at relatively low capital strain, and we have provided some color on the IRR calculations in the appendix to the slides.

Speaker #2: We are seeing benefits from the modernization programs as well as greater use of digital customer service. And we continue to invest in growth and productivity initiatives that will deliver real impact across the group.

Speaker #2: Individual annuity sales were up 11% to £865 million, supported by the launch of our new guaranteed fixed income plan last year. Operating profit was up 2%, as we benefited from higher CSM releases and asset optimization.

Speaker #2: Including, of course, the use of AI and automation. We expect this investment to improve operating leverage and unlock significant long-term value, for more existing customer base and extensive data assets.

Speaker #2: Now, our consistent capital allocation framework is a critical part of what we do to optimize our diversified group. This slide, I come back to at each results, as it summarizes how we think about our performance and financial strengths, and what that means for how we use capital.

Speaker #2: We remain active in retirement, and we'll continue to be disciplined in the competitive environment. Now, turning to costs and efficiency—the ratios have improved across the group due to acquisitions, growth in the business, and our focus on efficiency.

Charlotte Jones: We remain active in retirement and will continue to be disciplined in the competitive environment. Now turning to costs and efficiency. The ratios have improved across the group due to acquisitions, growth in the business, and our focus on efficiency. For example, our cost asset ratio in IWR has improved by more than four basis points over the last 12 months alone, demonstrating strong operating leverage. We are seeing benefits from the modernization programs, as well as greater use of digital customer service. We continue to invest in growth and productivity initiatives that will deliver real impact across the group, including, of course, the use of AI and automation. We expect this investment to improve operating leverage and unlock significant long-term value from our existing customer base and extensive data assets.

Charlotte Jones: The ratios have improved across the group due to acquisitions, growth in the business, and our focus on efficiency. For example, our cost asset ratio in IWR has improved by more than four basis points over the last 12 months alone, demonstrating strong operating leverage. We are seeing benefits from the modernization programs, as well as greater use of digital customer service. We continue to invest in growth and productivity initiatives that will deliver real impact across the group, including, of course, the use of AI and automation. We expect this investment to improve operating leverage and unlock significant long-term value from our existing customer base and extensive data assets. Our consistent capital allocation framework is a critical part of what we do to optimize our diversified group.

Speaker #2: For example, our cost-asset ratio in IWR has improved by more than 4 basis points over the last 12 months alone, demonstrating strong operating leverage.

Speaker #2: We are continuing to build sustainable growth in earnings and cash, and maintain balance sheet strength. This is allowing us to grow the regular dividends and invest in the business for growth and efficiency.

Speaker #2: We are seeing benefits from the modernization programs, as well as greater use of digital customer service. And we continue to invest in growth and productivity initiatives that will deliver real impact across the group, including, of course, the use of AI and automation.

Speaker #2: And we are returning capital to shareholders, with our latest share back buyback recently completed. Nothing's new here, but it's important that you can see we do this exceptionally well.

Speaker #2: Now, one of the advantages of the model is we have built sorry, is that we have sorry, one of excuse me. One of the advantages of the model we have built is proactive balance sheet management.

Speaker #2: We expect this investment to improve operating leverage and unlock significant long-term value, leveraging our existing customer base and extensive data assets. Now, our consistent capital allocation framework is a critical part of what we do to optimize our diversified group.

Speaker #2: At full year 2025, our shareholder cover ratio was 180%. In the first half, operating capital generation added 9 points. A little higher than normal because of the lower capital strain on BPA, some benign weather, and of course, the benefits from direct line.

Charlotte Jones: Our consistent capital allocation framework is a critical part of what we do to optimize our diversified group. This slide I come back to with each result, as it summarizes how we think about our performance and financial strength, and what that means for how we use capital. We are continuing to build sustainable growth in earnings and cash and maintain balance sheet strength. This is allowing us to grow the regular dividends and invest in the business for growth and efficiency. We are returning capital to shareholders with our latest share buyback recently completed. Nothing is new here, but it is important that you can see we do this exceptionally well. One of the advantages of the model we have built is proactive balance sheet management. At full year 2025, our shareholder cover ratio was 180%.

Speaker #2: I come back to this slide at each results, as it summarizes how we think about our performance and financial strengths, and what that means for how we use capital.

Charlotte Jones: This slide I come back to with each result, as it summarizes how we think about our performance and financial strength, and what that means for how we use capital. We are continuing to build sustainable growth in earnings and cash and maintain balance sheet strength. This is allowing us to grow the regular dividends and invest in the business for growth and efficiency. We are returning capital to shareholders with our latest share buyback recently completed. Nothing is new here, but it is important that you can see we do this exceptionally well. One of the advantages of the model we have built is proactive balance sheet management. At full year 2025, our shareholder cover ratio was 180%.

Speaker #2: Also includes about 1 point of management actions. Non-operating items reduce solvency by around 3 points, comprising 1 point from integration and restructuring, and 2 from market movements.

Speaker #2: And we are returning capital to shareholders, with our latest share buyback recently completed. Nothing's new here, but it's important that you can see we do this exceptionally well.

Speaker #2: After debt actions, the dividend and buyback are half-year cover ratio is 176%. Now, looking forward, we're confident in reaching high 180s by the end of the year.

Speaker #2: Now, one of the advantages of the model we have built—sorry, is that we have—sorry, one of—excuse me. One of the advantages of the model we have built is proactive balance sheet management.

Speaker #2: Subject, of course, to market movements. And this guidance includes the benefit of at least 7 additional points, or 350 million pounds, from the expected direct line capital synergies.

Speaker #2: At full year 2025, our shareholder cover ratio was 180%. In the first half, operating capital generation added 9 points — a little higher than normal because of the lower capital strain on BPA, some benign weather, and, of course, the benefits from Direct Line.

Speaker #2: Now, Amanda will speak about AI again shortly, but I wanted to talk briefly about this in the context of investing in the business. Our business, as usual, changed investment is 450 million pounds each year across the group for growth, customer, and efficiency.

Charlotte Jones: In the H1, operating capital generation added nine points, a little higher than normal because of the lower capital strain on BPA, some benign weather, and of course, the benefits from Direct Line. It also includes about one point of management actions. Non-operating items reduce solvency by around three points, comprising one point from integration and restructuring, and two from market movements. After debt actions, the dividend, and buyback, our half year cover ratio is 176%. Looking forward, we are confident in reaching high 180s by the end of the year, subject of course to market movements. This guidance includes the benefit of at least seven additional points or GBP 350 million from the expected Direct Line capital synergies. Amanda will speak about AI again shortly, but I wanted to talk briefly about this in the context of investing in the business.

Speaker #2: This also includes about one point of management actions. Non-operating items reduce solvency by around three points, comprising one point from integration and restructuring, and two from market movements.

Speaker #2: And we're allocating increasing amounts of this budget towards AI, taking a disciplined approach by applying strict return thresholds, monitoring costs, and focusing on the opportunities that can be scaled across the group.

Speaker #2: After debt actions, the dividend and buyback half-year cover ratio is 176%. Now, looking forward, we're confident in reaching the high 180s by the end of the year, subject, of course, to market movements.

Speaker #2: We aim to unlock benefits quickly in key areas and deploy these savings by either reinvesting them in new opportunities, factoring them into trading decisions, or realizing them in the bottom line.

Speaker #2: There's significant potential here, which we are really well placed to unlock. So before I hand back to Amanda, let me close with the outlooks.

Speaker #2: And this guidance includes the benefit of at least 7 additional points, or £350 million, from the expected Direct Line capital synergies. Now, Amanda will speak about AI again shortly, but I wanted to talk briefly about this in the context of investing in the business.

Speaker #2: I've already shared some of the details, so let me just pick up on a few points here. The direct line integration is going really well, and we expect cost synergies to reach 130 million pounds this year, which will flow through fully next year.

Speaker #2: Our business as usual change investment is 450 million pounds. Each year, across the group, for growth, customer, and efficiency. And we're allocating increasing amounts of this budget towards AI, taking a disciplined approach by applying strict return thresholds, monitoring costs, and focusing on the opportunities that can be scaled across the group.

Charlotte Jones: Our business as usual change investment is GBP 450 million each year across the group for growth, customer, and efficiency. We are allocating increasing amounts of this budget towards AI, taking a disciplined approach by applying strict return thresholds, monitoring costs, and focusing on the opportunities that can be scaled across the group. We aim to unlock benefits quickly in key areas and deploy these savings by either reinvesting them in new opportunities, factoring them into trading decisions, or realizing them in the bottom line. There is significant potential here, which we are really well-placed to unlock. Before I hand back to Amanda, let me close with the outlook. I have already shared some of the details, so let me just pick up on a few points here.

Speaker #2: Wealth momentum continues, with the next material transfer of Mercer Master Trust assets expected in Q4. Now, group operating profit in the first half was strong.

Speaker #2: And the second half will continue to benefit from many of the same drivers. But of course, that needs to be balanced against some of the other effects, including the cap impacts in Canada.

Speaker #2: So as a result, we expect full year operating EPS to be around 11%. Slightly above the 2026 guidance we gave you last year, and broadly in line with current market estimates.

Speaker #2: There's significant potential here, which we are really well-placed to unlock. So, before I hand back to Amanda, let me close with the outlook.

Speaker #2: So to conclude, this is a business that is performing strongly, our people are engaged and focused, giving me great confidence in the trajectory towards our 2028 targets.

Speaker #2: I've already shared some of the detail, so let me just pick up on a few points here. The Direct Line integration is going really well, and we expect cost synergies to reach £130 million this year, which will flow through fully next year.

Charlotte Jones: The Direct Line integration is going really well, and we expect cost synergies to reach GBP 130 million this year, which will flow through fully next year. Wealth momentum continues with the next material transfer of Mercer Master Trust assets expected in Q4. Group operating profit in the H1 was strong, and the H2 will continue to benefit from many of the same drivers. But of course, that needs to be balanced against some of the other effects, including the CAT impacts in Canada. As a result, we expect full year operating EPS to be around 11%, slightly above the 2026 guidance we gave you last year, and broadly in line with current market estimates. To conclude, this is a business that is performing strongly. Our people are engaged and focused, giving me great confidence in the trajectory towards our 2028 targets.

Speaker #2: And with the opportunities that Amanda will cover now, I am equally confident in our sustained longer-term growth. And with that, back to you, Amanda.

Speaker #2: Wealth momentum continues, with the next material transfer of Mercer Master Trust assets expected in Q4. Now, group operating profit in the first half was strong.

Speaker #1: Okay.

Speaker #2: Thanks, Charlotte. So these results are testament to everything that we have delivered over the last 6 years. Executing our clear strategy, delivering year-on-year, and accelerating with targeted M&A.

Speaker #2: And the second half will continue to benefit from many of the same drivers. But, of course, that needs to be balanced against some of the other effects, including the cap impacts in Canada.

Speaker #2: And that is why we are on such a strong trajectory. And why I want to focus now on where we go from here. So we think about Aviva's future across two horizons.

Speaker #2: So as a result, we expect full-year operating EPS to be around 11%, slightly above the 2026 guidance we gave you last year and broadly in line with current market estimates.

Speaker #2: The first is our 3-year targets. We have real confidence in these as we unlock material benefits from direct line, and drive strong organic growth across the group.

Speaker #2: So, to conclude, this is a business that is performing strongly. Our people are engaged and focused, giving me great confidence in the trajectory towards our 2028 targets.

Charlotte Jones: To conclude, this is a business that is performing strongly. Our people are engaged and focused, giving me great confidence in the trajectory towards our 2028 targets. And with the opportunities that Amanda will cover now, I am equally confident in our sustained longer-term growth. With that, back to you, Amanda.

Speaker #2: The second horizon is over the longer term. Here, we see clear upside from serving even more customer needs, Aviva's AI opportunity, and our material growth platforms.

Speaker #2: And with the opportunities that Amanda will cover now, I am equally confident in our sustained, longer-term growth. And with that, back to you, Amanda.

Charlotte Jones: And with the opportunities that Amanda will cover now, I am equally confident in our sustained longer-term growth. With that, back to you, Amanda.

Speaker #2: So let me take you through each of these horizons in turn, starting with our 3-year targets. Realizing the benefits from direct line is a critical part of our plans.

Speaker #1: Okay.

Amanda Blanc: Okay. Thanks, Charlotte. These results are testament to everything that we have delivered over the last six years. Executing our clear strategy, delivering year on year, and accelerating with targeted M&A. That is why we are on such a strong trajectory, and why I want to focus now on where we go from here. We think about Aviva's future across two horizons. The first is our three-year targets. We have real confidence in these as we unlock material benefits from Direct Line and drive strong organic growth across the group. The second horizon is over the longer term. Here we see clear upside from serving even more customer needs, Aviva's AI opportunity, and our material growth platforms. Let me take you through each of these horizons in turn, starting with our three-year targets. Realizing the benefits from Direct Line is a critical part of our plans.

Speaker #2: Thanks, Charlotte. These results are a testament to everything we have delivered over the last six years—executing our clear strategy, delivering year on year, and accelerating with targeted M&A.

Speaker #2: For customers, we continue to deliver excellent service, and we are pleased with the retention levels that we are seeing. On the people front, we officially welcomed 8,000 direct line employees as Aviva colleagues as we completed the QP process.

Speaker #2: And that is why we are on such a strong trajectory, and why I want to focus now on where we go from here. So, we think about Aviva's future across two horizons.

Speaker #2: And we continue to right-size and strengthen the combined business as the integration progresses. We have transferred almost 5 billion pounds of assets to Aviva Investors, improving the investment returns and reducing external fees.

Speaker #2: The first is our three-year targets. We have real confidence in these as we unlock material benefits from Direct Line and drive strong organic growth across the group.

Speaker #2: And we have moved to a single claims function, realizing the benefits of shared capabilities, data, and scale. So we are well on track for all of our synergy ambitions.

Speaker #2: The second horizon is over the longer term. Here, we see clear upside from serving even more customer needs, Aviva's AI opportunity, and our material growth platforms.

Speaker #2: We have already delivered 100 million pounds of run rate cost synergies, and 150 million pounds of capital synergies. And 40 million pounds of annual claims cost savings.

Speaker #2: So let me take you through each of these horizons in turn, starting with our three-year targets. Realizing the benefits from Direct Line is a critical part of our plans.

Amanda Blanc: Let me take you through each of these horizons in turn, starting with our three-year targets. Realizing the benefits from Direct Line is a critical part of our plans. For customers, we continue to deliver excellent service, and we are pleased with the retention levels that we are seeing. On the people front, we officially welcomed 8,000 Direct Line employees as Aviva colleagues as we completed the TUPE process. We continue to rightsize and strengthen the combined business as the integration progresses. We have transferred almost GBP 5 billion of assets to Aviva Investors, improving the investment returns and reducing external fees. We have moved to a single claims function, realizing the benefits of shared capabilities, data, and scale. We are well on track for all of our synergy ambitions.

Speaker #2: And there is more to come in the second half. Turning now to direct line motor performance. Beyond the integration, Owen and the team are doing a fantastic job here.

Amanda Blanc: For customers, we continue to deliver excellent service, and we are pleased with the retention levels that we are seeing. On the people front, we officially welcomed 8,000 Direct Line employees as Aviva colleagues as we completed the TUPE process. We continue to rightsize and strengthen the combined business as the integration progresses. We have transferred almost GBP 5 billion of assets to Aviva Investors, improving the investment returns and reducing external fees. We have moved to a single claims function, realizing the benefits of shared capabilities, data, and scale. We are well on track for all of our synergy ambitions. We have already delivered GBP 100 million of run rate cost synergies and GBP 150 million of capital synergies, and GBP 40 million of annual claims cost savings, and there is more to come in the H2. Turning now to Direct Line motor performance.

Speaker #2: We were not happy with margins on day one. So we took immediate action on rate. We also rolled out Aviva's pricing models and combined datasets.

Speaker #2: And we continue to right-size and strengthen the combined business as the integration progresses. We have transferred almost £5 billion of assets to Aviva Investors, improving the investment returns and reducing external fees.

Speaker #2: And the results are clear. Written combined ratios have improved by more than 10 points, and direct line is an important contributor to the strength of today's personal lines result.

Speaker #2: And we have moved to a single claims function, realizing the benefits of shared capabilities, data, and scale, so we are well on track for all of our synergy ambitions.

Speaker #2: We have accelerated the rollout of direct line motor brand on all four major comparison websites, policies here have increased almost 10-fold over the last 12 months to around half a million, without weakening the broader book.

Speaker #2: We have already delivered 100 million pounds of run rate cost synergies and 150 million pounds of capital synergies, and 40 million pounds of annual claims cost savings, and there is more to come in the second half.

Amanda Blanc: We have already delivered GBP 100 million of run rate cost synergies and GBP 150 million of capital synergies, and GBP 40 million of annual claims cost savings, and there is more to come in the H2. Turning now to Direct Line motor performance. Beyond the integration, Owen and the team are doing a fantastic job here. We were not happy with margins on day one, so we took immediate action on rate. We also rolled out Aviva's pricing models and combined datasets, and the results are clear. Written combined ratios have improved by more than 10 points, and Direct Line is an important contributor to the strength of today's personal lines results. We have accelerated the rollout of Direct Line motor brand on all four major comparison websites.

Speaker #2: Overall PCW new business share is now at the highest ever level. Aviva already had first-class capabilities across pricing and underwriting, distribution, and claims. This turnaround is all about embedding that experience at scale.

Speaker #2: Turning now to Direct Line motor performance. Beyond the integration, Owen and the team are doing a fantastic job here. We were not happy with margins on day one.

Amanda Blanc: Beyond the integration, Owen and the team are doing a fantastic job here. We were not happy with margins on day one, so we took immediate action on rate. We also rolled out Aviva's pricing models and combined datasets, and the results are clear. Written combined ratios have improved by more than 10 points, and Direct Line is an important contributor to the strength of today's personal lines results. We have accelerated the rollout of Direct Line motor brand on all four major comparison websites. Policies here have increased almost tenfold over the last 12 months to around half a million, without weakening the broader book. Overall, PCW new business share is now at the highest ever level. Aviva already had first-class capabilities across pricing, underwriting, distribution, and claims. This turnaround is all about embedding that experience at scale.

Speaker #2: So direct line is supporting our capital light strategy, strengthening our position in a key market, and delivering material shareholder value. It's a great example of how we are taking a disciplined approach to M&A.

Speaker #2: So, we took immediate action on rate. We also rolled out Aviva's pricing models and combined datasets. And the results are clear: written combined ratios have improved by more than 10 points, and Direct Line is an important contributor to the strength of today's personal lines result.

Speaker #2: But it's not just about direct line. Organic growth is another driver of our current 3-year targets. And wealth is a great example here. Doug and the team have doubled the profits since 2019, and as you hear earlier from Charlotte, momentum is stronger than ever.

Speaker #2: We have accelerated the rollout of Direct Line Motor brand on all four major comparison websites. Policies here have increased almost tenfold over the last 12 months to around half a million, without weakening the broader book.

Amanda Blanc: Policies here have increased almost tenfold over the last 12 months to around half a million, without weakening the broader book. Overall, PCW new business share is now at the highest ever level. Aviva already had first-class capabilities across pricing, underwriting, distribution, and claims. This turnaround is all about embedding that experience at scale.

Speaker #2: We delivered 7.6 billion pounds of net flows, which is up more than 30%, driven by all parts of the business. To put that into perspective, it's almost as much as our full year net flows in 2023.

Speaker #2: Overall, PCW new business share is now at its highest ever level. Aviva already had first-class capabilities across pricing and underwriting, distribution, and claims. This turnaround is all about embedding that experience at scale.

Speaker #2: And over the last 12 months, we have grown by almost 300,000 customers across workplace, advice, and direct. All of this is down to our strategic progress and targeted investment across the board.

Speaker #2: So, Direct Line is supporting our capital-light strategy, strengthening our position in a key market, and delivering material shareholder value. It's a great example of how we are taking a disciplined approach to M&A.

Amanda Blanc: Direct Line is supporting our capital-light strategy, strengthening our position in a key market, and delivering material shareholder value. It's a great example of how we are taking a disciplined approach to M&A. Organic growth is another driver of our current three-year targets, and wealth is a great example here. Doug and the team have doubled the profit since 2019, and as you heard earlier from Charlotte, momentum is stronger than ever. We delivered GBP 7.6 billion of net flows, which is up more than 30%, driven by all parts of the business. To put that into perspective, it's almost as much as our full year net flows in 2023. Over the last 12 months, we have grown by almost 300,000 customers across workplace, advice, and direct. All of this is down to our strategic progress and targeted investment across the board.

Speaker #2: Enhancing our Master Trust proposition in workplace is why we are now the exclusive partner for Mercer, this will bring 8 billion pounds' worth of assets.

Speaker #2: In Advisor Platform, our onshore bond has attracted 700 million pounds of flows since its launch. Indirect wealth, over 70% of sales, are to our existing customers.

Speaker #2: But it's not just about direct line. Organic growth is another driver of our current three-year targets, and wealth is a great example here. Doug and the team have doubled the profits since 2019, and as you heard earlier from Charlotte, momentum is stronger than ever.

Speaker #2: And in succession wealth, over 3 billion pounds of advice assets are now on Aviva's platform, and even more value coming through referrals. So we are well set to deliver continued strong profitable growth on track for our 280 million pounds profit ambition in 2027.

Speaker #2: And we will tell you a lot more about our organic opportunity and wealth at our in-focus session in October. Now let's conclude the first horizon by looking at the progression of our portfolio.

Speaker #2: And over the last 12 months, we have grown by almost 300,000 customers across Workplace, Advice, and Direct. All of this is down to our strategic progress and targeted investment across the board.

Speaker #2: Four years ago, our earnings mix was evenly split. Today, we are 70% capital light, and returns have doubled over the same period. By capturing the benefits of direct line and continuing to grow organically, we are on track to reach 75% by the end of 2028.

Speaker #2: Enhancing our master trust proposition in Workplace is why we are now the exclusive partner for Mercer. This will bring £8 billion worth of assets.

Amanda Blanc: Enhancing our master trust proposition in workplace is why we are now the exclusive partner for Mercer. This will bring GBP 8 billion worth of assets. In Adviser Platform, our Onshore Bond has attracted GBP 700 million of flows since its launch. In direct wealth, over 70% of sales are to our existing customers. In Succession Wealth, over GBP 3 billion of advice assets are now on Aviva's platform, and even more value coming through referrals. We are well set to deliver continued strong, profitable growth on track for our GBP 280 million profit ambition in 2027. We will tell you a lot more about our organic opportunity and wealth at our In Focus session in October. Let's conclude the first horizon by looking at the progression of our portfolio. Four years ago, our earnings mix was evenly split.

Speaker #2: In Advisor Platform, our onshore bond has attracted £700 million of flows since its launch. In Direct Wealth, over 70% of sales are to our existing customers.

Speaker #2: That means faster growth, less capital deployed, and better returns. Now let me move to the second horizon. Our longer-term growth beyond 2028. There is still so much more potential to unlock at Aviva.

Speaker #2: And in Succession Wealth, over £3 billion of advised assets are now on Aviva's platform, and even more value is coming through referrals. So, we are well set to deliver continued strong, profitable growth, on track for our £280 million profit ambition in 2027, and we will tell you a lot more about our organic opportunity and Wealth at our in-focus session in October.

Speaker #2: First, our customer advantage is our customers' lifetime financial needs than any other insurer. Second, we are transforming with AI, and with our scale and data we have a material opportunity.

Speaker #2: Now, let's conclude the first horizon by looking at the progression of our portfolio. Four years ago, our earnings mix was evenly split. Today, we are 70% capital-light, and returns have doubled over the same period.

Speaker #2: And third, our capital light focus is unchanged. We have attractive long-term growth platforms with significant headroom to go after. And with our scale and customer reach, range of growth options, and disciplined capital allocation, the value of these three opportunities is amplified by our diversified model.

Amanda Blanc: Today, we are 70% capital light, and returns have doubled over the same period. By capturing the benefits of Direct Line and continuing to grow organically, we are on track to reach 75% by the end of 2028. That means faster growth, less capital deployed, and better returns. Let me move to the second horizon, our longer-term growth beyond 2028. There is still so much more potential to unlock at Aviva. First, our customer advantage is unique, and we can serve more of our customers' lifetime financial needs than any other insurer. Second, we are transforming with AI, and with our scale and data, we have a material opportunity. Third, our capital light focus is unchanged. We have attractive long-term growth platforms with significant headroom to go after.

Speaker #2: By capturing the benefits of Direct Line and continuing to grow organically, we are on track to reach 75% by the end of 2028. That means faster growth, less capital deployed, and better returns.

Speaker #2: Now let me take you through each opportunity in more detail. Starting with our customer advantage. We have more than 25 million customers, with a leading franchise in UK financial services and products to meet across needs across a lifetime.

Speaker #2: Now, let me move to the second horizon—our longer-term growth beyond 2028. There is still so much more potential to unlock at Aviva. First, our customer advantage is unique.

Speaker #2: That enables us to deepen relationships and create more value over the longer term. We also have strong presence across corporate and SMEs. In fact, one in three large UK corporates already hold a policy with Aviva.

Speaker #2: And we can serve more of our customers’ lifetime financial needs than any other insurer. Second, we are transforming with AI, and with our scale and data, we have a material opportunity.

Speaker #2: So we have the customers, the products, the brand, and the experience. And together, that creates a customer opportunity that no one else can match.

Speaker #2: And third, our capital-light focus is unchanged. We have attractive long-term growth platforms with significant headroom to go after. With our scale and customer reach, range of growth options, and disciplined capital allocation, the value of these three opportunities is amplified by our diversified model.

Speaker #2: And we are already unlocking that opportunity. Back in 2022, we had 4.7 million multi-product customers. Today, we have over 7 million. Nearly half of all the new policies sold today are to existing customers.

Amanda Blanc: With our scale and customer reach, range of growth options, and disciplined capital allocation, the value of these three opportunities is amplified by our diversified model. Let me take you through each opportunity in more detail. Starting with our customer advantage. We have more than 25 million customers with a leading franchise in UK financial services and products to meet needs across a lifetime. That enables us to deepen relationships and create more value over the longer term. We also have strong presence across corporate and SMEs. In fact, one in three large UK corporates already hold a policy with Aviva.

Speaker #2: Now let me take you through each opportunity in more detail, starting with our customer advantage. We have more than 25 million customers, with a leading franchise in UK financial services and products to meet needs across a lifetime.

Speaker #2: That is up 6% points and well above the natural share that we would expect from scale alone. This is not cross-selling for the sake of it.

Speaker #2: It is about offering the right products to the right customers at the right time. And the benefits are clear. Multi-product customers have lower acquisition costs, and higher retention and engagement.

Speaker #2: That enables us to deepen relationships and create more value over the longer term. We also have a strong presence across corporate and SMEs. In fact, one in three large UK corporates already holds a policy with Aviva.

Speaker #2: So they are a powerful driver of future growth. Now let me touch on how we are serving even more customer needs. Customer expectations are rising.

Speaker #2: So we are accelerating to stay ahead. We are meeting customers wherever they want, across any channel. We already have a clear advantage as the leading PCW insurer.

Speaker #1: We have already unlocked that opportunity. Back in 2022, we had 4.7 million multi-product customers. Today, we have over 7 million. Nearly half of all the new policies sold today are to existing customers.

Amanda Blanc: We are already unlocking that opportunity. Back in 2022, we had 4.7 million multi-product customers. Today, we have over 7 million. Nearly half of all the new policies sold today are to existing customers. That is up to 6 percentage points and well above the natural share that we would expect from scale alone. This is not cross-selling for the sake of it. It is about offering the right products to the right customers at the right time. The benefits are clear. Multi-product customers have lower acquisition costs and higher retention and engagement. They are a powerful driver of future growth. Now let me touch on how we are serving even more customer needs. Customer expectations are rising, so we are accelerating to stay ahead. We are meeting customers wherever they want across any channel.

Speaker #2: And we believe that AI-led distribution will be an important channel in the future. And that is why we are an early mover here. We are enhancing our ability to target and predict our customer needs.

Speaker #1: That is up to 6 percentage points, and well above the natural share that we would expect on scale alone. This is not cross-selling for the sake of it.

Speaker #2: With our single view of customer data and our AI capabilities, we can do this even more effectively than ever. And we are using myAviva as the front door to everything that we offer, leveraging AI to provide a seamless experience and more meaningful engagement with our customers, getting this right means we can genuinely be a lifetime partner for our customers.

Speaker #1: It is about offering the right products to the right customers at the right time. And the benefits are clear: multi-product customers have lower acquisition costs and higher retention and engagement, so they are a powerful driver of future growth.

Speaker #1: Now, let me touch on how we are serving even more customer needs. Customer expectations are rising, so we are accelerating to stay ahead. We are meeting customers wherever they want, across any channel.

Speaker #2: Turning now to the second opportunity of transforming with artificial intelligence. Our opportunity here is greater than for most insurers, and the reasons are clear.

Speaker #2: As you just heard, we have millions of customers a trusted brand and a breadth of distribution. Our scale means that we can invest, innovate, and redeploy across the group.

Speaker #1: We already have a clear advantage as the leading PCW insurer, and we believe that AI-led distribution will be an important channel in the future.

Amanda Blanc: We already have a clear advantage as the leading PCW insurer, and we believe that AI-led distribution will be an important channel in the future, and that is why we are an early mover here. We are enhancing our ability to target and predict our customer needs. With our single view of customer data and our AI capabilities, we can do this even more effectively than ever. We are using MyAviva as the front door to everything that we offer, leveraging AI to provide a seamless experience and meaningful engagement with our customers. Getting this right means we can genuinely be a lifetime partner for our customers. Turning now to the second opportunity of transforming with artificial intelligence. Our opportunity here is greater than for most insurers, and the reasons are clear. As you just heard, we have millions of customers, a trusted brand, and a breadth of distribution.

Speaker #2: We have huge volumes of proprietary data, which is the most critical asset to actually transform with AI. This is an advantage that cannot be replicated.

Speaker #1: And that is why we are an early mover here. We are enhancing our ability to target and predict our customers' needs. With our single view of customer data and our AI capabilities, we can do this even more effectively than ever.

Speaker #2: And one that will widen over time. We have also been investing in technology. So our IT and digital estates are in a good place.

Speaker #2: And we have been using AI and machine learning to drive commercial impact for over a decade now. UK personal lines is a great example.

Speaker #1: And we are using myAviva as the front door to everything that we offer, leveraging AI to provide a seamless experience and more meaningful engagement with our customers. Getting this right means we can genuinely be a lifetime partner for our customers.

Speaker #2: We have used AI in our pricing models to deliver over 200 million pounds of run-rate benefits here. That is on top of 100 million pounds of claims cost savings previously mentioned.

Speaker #1: Turning now to the second opportunity of transforming with artificial intelligence. Our opportunity here is greater than for most insurers, and the reasons are clear.

Speaker #2: And we can rapidly build on our expertise as we move into the next phase of AI, now with generative and agentic. So these are all important moats and competitive advantages when it comes to transforming with AI.

Speaker #1: As you just heard, we have millions of customers, a trusted brand, and a breadth of distribution. Our scale means that we can invest, innovate, and redeploy across the group.

Amanda Blanc: As you just heard, we have millions of customers, a trusted brand, and a breadth of distribution. Our scale means that we can invest, innovate, and redeploy across the group. We have huge volumes of proprietary data, which is the most critical asset to actually transform with AI. This is an advantage that cannot be replicated and one that will widen over time. We have also been investing in technology. Our IT and digital estates are in a good place, and we have been using AI and machine learning to drive commercial impact for over a decade now. UK Personal Lines is a great example.

Amanda Blanc: Our scale means that we can invest, innovate, and redeploy across the group. We have huge volumes of proprietary data, which is the most critical asset to actually transform with AI. This is an advantage that cannot be replicated and one that will widen over time. We have also been investing in technology. Our IT and digital estates are in a good place, and we have been using AI and machine learning to drive commercial impact for over a decade now. UK Personal Lines is a great example. We have used AI in our pricing models to deliver over GBP 200 million of run rate benefits here. That is on top of GBP 100 million of claims cost savings previously mentioned. We can rapidly build on our expertise as we move into the next phase of AI now with generative and agentic.

Speaker #2: And we have clear plans to capture the opportunity across the full value chain. We are building on years of investment. Now it is about embedding AI within our journeys decision-making and day-to-day activities.

Speaker #1: We have huge volumes of proprietary data, which is the most critical asset to actually transform with AI. This is an advantage that cannot be replicated.

Speaker #2: And this is the next step towards our vision for Aviva. As Charlotte said, we are taking a disciplined approach with four opportunities that cut across the whole group.

Speaker #1: And one that will widen over time. We have also been investing in technology, so our IT and digital estates are in a good place.

Speaker #1: And we have been using AI and machine learning to drive commercial impact for over a decade now. UK Personal Lines is a great example.

Speaker #2: And as you can see, the transformation is already well underway. Aiming to drive material revenue and efficiency benefits, and better customer outcomes. Every year, we have over 15 million customer inquiries.

Speaker #1: We have used AI in our pricing models to deliver over £200 million of run-rate benefits here. That is on top of the £100 million of claims cost savings previously mentioned.

Amanda Blanc: We have used AI in our pricing models to deliver over GBP 200 million of run rate benefits here. That is on top of GBP 100 million of claims cost savings previously mentioned. We can rapidly build on our expertise as we move into the next phase of AI now with generative and agentic. These are all important moats and competitive advantages when it comes to transforming with AI. We have clear plans to capture the opportunity across the full value chain. We are building on years of investment. Now it is about embedding AI within our journeys, decision making, and day-to-day activities, and this is the next step towards our vision for Aviva.

Speaker #2: And most of them are handled by our people. So later this year, we are launching our AI virtual assistant to help customers with many of their queries.

Speaker #1: And we can rapidly build on our expertise as we move into the next phase of AI—now with generative and agentic. So, these are all important notes and competitive advantages when it comes to transforming with AI.

Speaker #2: In protection, we have halved the number of the amount of time it takes to review each case in medical underwriting. With near perfect accuracy.

Amanda Blanc: These are all important moats and competitive advantages when it comes to transforming with AI. We have clear plans to capture the opportunity across the full value chain. We are building on years of investment. Now it is about embedding AI within our journeys, decision making, and day-to-day activities, and this is the next step towards our vision for Aviva. As Charlotte said, we are taking a disciplined approach with four opportunities that cut across the whole group. As you can see, the transformation is already well underway, aiming to drive material revenue and efficiency benefits and better customer outcomes. Every year, we have over 15 million customer inquiries, and most of them are handled by our people. Later this year, we are launching our AI virtual assistant to help customers with many of their queries.

Speaker #2: This is improving response time for customers, but helping also our teams to handle more cases. In claims, we are building a voice-enabled AI claims agent that will automatically route more than half of our mortal calls in personal lines.

Speaker #1: And we have clear plans to capture the opportunity across the full value chain. We are building on years of investment—now it is about embedding AI within our journeys, decision-making, and day-to-day activities. This is the next step towards our vision for Aviva.

Speaker #2: And it will always be on, serving customers 24/7. And all colleagues have AI productivity tools. We are now rolling out Claude Cowork to our most senior leaders.

Speaker #1: As Charlotte said, we are taking a disciplined approach with four opportunities that cut across the whole Group. And, as you can see, the transformation is already well underway.

Amanda Blanc: As Charlotte said, we are taking a disciplined approach with four opportunities that cut across the whole group. As you can see, the transformation is already well underway, aiming to drive material revenue and efficiency benefits and better customer outcomes. Every year, we have over 15 million customer inquiries, and most of them are handled by our people. Later this year, we are launching our AI virtual assistant to help customers with many of their queries.

Speaker #2: Because we know that we need to lead from the top. And in wealth, we are using agentic AI to automatically sorry, to automate quality assurance.

Speaker #1: Aiming to drive material revenue and efficiency benefits, and better customer outcomes. Every year, we have over 15 million customer inquiries, and most of them are handled by our people.

Speaker #2: This will save 50% of time for our back office teams. Most importantly, it's a capability that we can reuse across IWR and beyond. And it's not just individual customers.

Speaker #1: So, later this year, we are launching our AI virtual assistant to help customers with many of their queries. In Protection, we have halved the amount of time it takes to review each case in medical underwriting.

Amanda Blanc: In protection, we have halved the amount of time it takes to review each case in medical underwriting with near-perfect accuracy. This is improving response time for customers but helping also our teams to handle more cases. In claims, we are building a voice-enabled AI claims agent that will automatically route more than half of our motor calls in Personal Lines, and it will always be on, serving customers 24/7. All colleagues have AI productivity tools. We are now rolling out Cowork to our most senior leaders because we know that we need to lead from the top. In Wealth, we are using agentic AI to automate quality assurance. This will save 50% of time for our back office teams. Most importantly, it is a capability that we can reuse across IWR and beyond. It is not just individual customers.

Speaker #2: We are using AI in commercial lines to reduce the time it takes to generate quotes from days to hours, which is driving higher conversion.

Speaker #1: With near-perfect accuracy, this is improving response time for customers, but also helping our teams to handle more cases. In claims, we are building a voice-enabled AI claims agent that will automatically route more than half of our mortal calls in personal lines.

Speaker #2: So whilst it's still early days, our momentum is clear. These benefits are a strong indicator of the value that we will create for our customers, our colleagues, and our shareholders.

Speaker #2: Now, before I talk through our long-term growth platforms, which is the third opportunity, let me explain why we are so confident in the underlying growth of the UK market.

Speaker #1: And it will always be on, serving customers 24/7. And all colleagues have AI productivity tools. We are now rolling out Claude Cowork to our most senior leaders.

Speaker #2: I haven't been in business here for over 325 years. We do know the UK very well. Put simply, our markets are underpinned by clear structural growth drivers that give us real confidence in the longer term.

Speaker #1: Because we know that we need to lead from the top. And in Wealth, we're using agentic AI to automatically—sorry, to automate—quality assurance.

Speaker #2: Let me give you an example. Almost 1 million people will retire every year over the next decade. Yet many are not financially prepared. That creates a huge need for retirement guidance, advice, and income.

Speaker #1: This will save 50% of time for our back-office teams. Most importantly, it's a capability that we can reuse across IWR and beyond. And it's not just individual customers.

Speaker #2: And we are seeing supportive regulatory developments here too. Potential reforms to pensions and auto enrollment would be a further set of tailwinds for workplace.

Speaker #1: We are using AI in commercial lines to reduce the time it takes to generate quotes from days to hours, which is driving higher conversion.

Amanda Blanc: We are using AI in commercial lines to reduce the time it takes to generate quotes from days to hours, which is driving higher conversion. While it is still early days, our momentum is clear. These benefits are a strong indication of the value that we will create for our customers, our colleagues, and our shareholders. Before I talk to our long-term growth platforms, which is the third opportunity, let me explain why we are so confident in the underlying growth of the UK market. Having been in business here for over 225 years, we do know the UK very well. Put simply, our markets are underpinned by clear structural growth drivers that give us real confidence in the longer term. Let me give you an example. Almost one million people will retire every year over the next decade, yet many are not financially prepared.

Speaker #2: These are just a couple of examples in wealth and retirement. It's the same story on the protection gap, healthcare needs, and under insurance. These customer needs are significant, and they are only set to grow.

Speaker #1: So, whilst it's still early days, our momentum is clear. These benefits are a strong indicator of the value that we will create for our customers, our colleagues, and our shareholders.

Speaker #2: And when you look at the broader markets, the scale of what lies ahead is compelling. We have material growth platforms in our portfolio, take wealth.

Speaker #1: Now, before I talk to our long-term growth platforms, which is the third opportunity, let me explain why we are so confident in the underlying growth of the UK market.

Speaker #2: Today, the market profit pool is around 3 billion pounds, shown by the white line on the chart. That is already significant. But in 10 years' time, it will more than triple to 10 billion pounds, shown by the blue bar.

Speaker #1: I haven't been in business here for over 325 years. We do know the UK very well. Put simply, our markets are underpinned by clear structural growth drivers.

Speaker #1: They give us real confidence in the longer term. Let me give you an example. Almost one million people will retire every year over the next decade.

Amanda Blanc: Almost one million people will retire every year over the next decade, yet many are not financially prepared. That creates a huge need for retirement guidance, advice, and income. We are seeing supportive regulatory developments here too. Potential reforms to pensions and auto-enrolment would be a further set of tailwinds for workplace. These are just a couple of examples in wealth and retirement. It is the same story on the protection gap, healthcare needs, and underinsurance. These customer needs are significant, and they are only set to grow. When you look at the broader markets, the scale of what lies ahead is compelling. We have material growth platforms in our portfolio. Take wealth. Today, the market profit pool is around GBP 3 billion, shown by the white line on the chart.

Speaker #2: That is exactly the kind of opportunity that we are going after. Across our five growth platforms, the profit pool will grow to more than 100 billion pounds over the next decade.

Speaker #1: Yet, many are not financially prepared. That creates a huge need for retirement guidance, advice, and income. We are also seeing supportive regulatory developments here, too.

Amanda Blanc: That creates a huge need for retirement guidance, advice, and income. We are seeing supportive regulatory developments here too. Potential reforms to pensions and auto-enrolment would be a further set of tailwinds for workplace. These are just a couple of examples in wealth and retirement. It is the same story on the protection gap, healthcare needs, and underinsurance. These customer needs are significant, and they are only set to grow. When you look at the broader markets, the scale of what lies ahead is compelling. We have material growth platforms in our portfolio. Take wealth. Today, the market profit pool is around GBP 3 billion, shown by the white line on the chart. That is already significant, but in 10 years' time, it will more than triple to GBP 10 billion, shown by the blue bar. That is exactly the kind of opportunity that we are going after.

Speaker #2: This is a huge opportunity to drive profitable growth for years to come, and we are well positioned to capitalize. So let me bring this to life with a few examples across UK wealth, UK general insurance, GCS, and Canada.

Speaker #1: Potential reforms to pensions and auto-enrollment would be a further set of tailwinds for workplace. These are just a couple of examples in Wealth and Retirement.

Speaker #2: Beyond 2028, wealth remains a highly attractive fast-growing market. There are nearly 3 trillion pounds' worth of assets today. Growing at double digits. We are already the number one player with 260 billion pounds in assets, almost 6 million customers, and leading positions in workplace and advisor platform.

Speaker #1: It's the same story on the protection gap, healthcare needs, and underinsurance. These customer needs are significant, and they are only set to grow. When you look at the broader markets, the scale of what lies ahead is compelling.

Speaker #1: We have material growth platforms in our portfolio. Take wealth. Today, the market profit pool is around £3 billion, shown by the white line on the chart.

Speaker #2: And our competitive advantages of scale, corporate relationships, lifetime offerings, and in-house investment solutions set us apart. Not to mention our mass affluent opportunity. With over 1 trillion pounds' worth of investable assets, held by Aviva customers.

Speaker #1: That is already significant. But in 10 years' time, it will more than triple to £10 billion, as shown by the blue bar. That is exactly the kind of opportunity that we are going after.

Amanda Blanc: That is already significant, but in 10 years' time, it will more than triple to GBP 10 billion, shown by the blue bar. That is exactly the kind of opportunity that we are going after. Across our five growth platforms, the profit pool will grow to more than GBP 100 billion over the next decade. This is a huge opportunity to drive profitable growth for years to come, and we are well positioned to capitalize. Let me bring this to life with a few examples across UK Wealth, UK General Insurance, GCS, and Canada. Beyond 2028, wealth remains a highly attractive, fast-growing market. There are nearly GBP 3 trillion worth of assets today, growing by double digits.

Speaker #2: And there is plenty of growth headroom, with opportunities such as master trust, targeted support, and direct wealth. So our organic growth opportunity is substantial.

Speaker #1: Across our five growth platforms, the profit pool will grow to more than £100 billion over the next decade. This is a huge opportunity to drive profitable growth for years to come, and we are well positioned to capitalize.

Amanda Blanc: Across our five growth platforms, the profit pool will grow to more than GBP 100 billion over the next decade. This is a huge opportunity to drive profitable growth for years to come, and we are well positioned to capitalize. Let me bring this to life with a few examples across UK Wealth, UK General Insurance, GCS, and Canada. Beyond 2028, wealth remains a highly attractive, fast-growing market. There are nearly GBP 3 trillion worth of assets today, growing by double digits. We are already the number one player with GBP 260 billion in assets, over six million customers, and leading positions in workplace and Adviser Platform. Not to mention our mass affluent opportunity. With over GBP 1 trillion worth of investable assets held by Aviva customers, our competitive advantages of scale, corporate relationships, lifetime offerings, and in-house investment solutions set us apart.

Speaker #2: And that is exactly what we are going after. Turning to UK general insurance, where we are the clear market leader. With the addition of direct line, we now have standout positions in personal lines, and we are a top commercial lines player.

Speaker #1: So let me bring this to life with a few examples across UK Wealth, UK General Insurance, GCS, and Canada. Beyond 2028, wealth remains a highly attractive, fast-growing market.

Speaker #2: With our scale, diversified product and distribution mix, and unique data advantage, we are well positioned to outperform through the cycle. Yet there are still clear opportunities across the portfolio.

Speaker #1: There are nearly £3 trillion worth of assets today, growing at double digits. We are already the number one player with £260 billion in assets, almost 6 million customers, and leading positions in workplace and advisor platforms.

Amanda Blanc: We are already the number one player with GBP 260 billion in assets, over six million customers, and leading positions in workplace and Adviser Platform. Not to mention our mass affluent opportunity. With over GBP 1 trillion worth of investable assets held by Aviva customers, our competitive advantages of scale, corporate relationships, lifetime offerings, and in-house investment solutions set us apart.

Speaker #2: And we have the leadership and talent to capitalize on these. Take the new specialty businesses, pet, rescue, and SME direct. Collectively, they are equivalent to the size of the home market.

Speaker #1: And our competitive advantages of scale, corporate relationships, lifetime offerings, and in-house investment solutions set us apart—not to mention our mass affluent opportunity. With over £1 trillion worth of investable assets held by Aviva customers.

Speaker #2: Yet our share is only mid-single digits. Now, with Aviva's capabilities and the capacity to invest, we can take all three to the next level.

Speaker #1: And there is plenty of growth headroom, with opportunities such as Master Trust, targeted support, and direct wealth. So our organic growth opportunity is substantial, and that is exactly what we are going after.

Speaker #2: At the same time, we are staying ahead of emerging trends with a strong innovation track record. We are a first mover on AI distribution.

Amanda Blanc: There is plenty of growth headroom with opportunities such as master trust, targeted support, and direct wealth. Our organic growth opportunity is substantial, and that is exactly what we are going after. Turning to UK general insurance, where we are the clear market leader. With the addition of Direct Line, we now have standout positions in personal lines, and we are a top commercial lines player. With our scale, diversified product and distribution mix, and unique data advantage, we are well positioned to outperform through the cycle. Yet there are still clear opportunities across the portfolio, and we have the leadership and talent to capitalize on these. Take the new specialty businesses, Pet, Rescue, and SME Direct. Collectively, they are equivalent to the size of the home market. Yet our share is only mid-single digits.

Speaker #2: And as autonomous vehicles roll out over the longer term, our in-house repair network and leading commercial proposition will be key differentiators. So our strategy here is simple.

Speaker #1: Turning to UK General Insurance, where we are the clear market leader: with the addition of Direct Line, we now have standout positions in personal lines, and we are a top commercial lines player.

Speaker #2: Extend the leadership in our core positions, while doubling down on the new growth avenues. Turning to global corporate and specialty. This market covers over 500 billion pounds of premiums globally.

Speaker #1: With our scale, diversified product and distribution mix, and unique data advantage, we are well positioned to outperform through the cycle. Yet, there are still clear opportunities across the portfolio.

Speaker #2: And we are a relatively small player today, which means our headroom is significant. What excites me most is not simply the market opportunity, it's the model that we have built.

Speaker #1: And we have the leadership and talent to capitalize on these. Take the new specialty businesses—pet, rescue, and SME direct. Collectively, they are equivalent to the size of the home market.

Speaker #2: We combine strong businesses in the UK and Canada, with our growing Lloyd's platform. Together, they help us serve more clients, deepen the broker relationships, and leverage Aviva's brand and shared capabilities.

Speaker #1: Yet our share is only mid-single digits. Now, with Aviva's capabilities and the capacity to invest, we can take all three to the next level.

Amanda Blanc: Now, with Aviva's capabilities and the capacity to invest, we can take all three to the next level. At the same time, we are staying ahead of emerging trends with a strong innovation track record. We are a first mover on AI distribution, and as autonomous vehicles roll out over the longer term, our in-house repair network and leading commercial proposition will be key differentiators. Our strategy here is simple, extend the leadership in our core positions while doubling down on the new growth avenues. Turning to global corporate and specialty. This market covers over GBP 500 billion of premiums globally, and we are a relatively small player today, which means our headroom is significant. What excites me most is not simply the market opportunity, it is the model that we have built. We combine strong businesses in the UK and Canada with our growing Lloyd's platform.

Speaker #2: And this model is already in action. We are expanding in Lloyd's and around new Aviva syndicates brand. And using our dual platform to create capabilities to share those one Aviva growth opportunities.

Speaker #1: At the same time, we're staying ahead of emerging trends with a strong innovation track record. We are a first mover on AI distribution. And as autonomous vehicles roll out over the longer term, our in-house repair network and leading commercial proposition will be key differentiators.

Speaker #2: More recently, we strengthened our access to the US commercial lines market with onshore presence. And we are doing this in a controlled manner, focused only on areas where we have strong underwriting expertise.

Speaker #1: So, our strategy here is simple: extend the leadership in our core positions while doubling down on the new growth avenues. Turning to Global Corporate and Specialty.

Speaker #2: For us, GCS is not just about participating in a growing market. It's about actively scaling our differentiated platform. And finally, on our opportunity in Canada.

Speaker #1: This market covers over £500 billion of premiums globally. And we are a relatively small player today, which means our headroom is significant. What excites me most is not simply the market opportunity.

Speaker #2: The fundamentals of the economy are attractive. And we are one of just two players with a truly national presence, which gives us significant potential.

Speaker #1: It's the module that we have built. We combine strong businesses in the UK and Canada with our growing alliance platform. Together, they help us serve more clients, deepen broker relationships, and leverage Aviva's brand and shared capabilities.

Amanda Blanc: We combine strong businesses in the UK and Canada with our growing Lloyd's platform. Together, they help us serve more clients, deepen the broker relationships, and leverage Aviva's brand and shared capabilities. This model is already in action. We are expanding in Lloyd's under our new Aviva Syndicates brand and using our dual platform to create capabilities to share those one Aviva growth opportunities. More recently, we strengthened our access to the US commercial lines market with onshore presence. We are doing this in a controlled manner, focused only on areas where we have a strong underwriting expertise. For us, GCS is not just about participating in a growing market, it is about actively scaling our differentiated platform.

Speaker #2: In personal lines, we already have partnerships with two top Canadian brands. And our most recent partnership with President's Choice gives us direct access to over 20 million customers.

Amanda Blanc: Together, they help us serve more clients, deepen the broker relationships, and leverage Aviva's brand and shared capabilities. This model is already in action. We are expanding in Lloyd's under our new Aviva Syndicates brand and using our dual platform to create capabilities to share those one Aviva growth opportunities. More recently, we strengthened our access to the US commercial lines market with onshore presence. We are doing this in a controlled manner, focused only on areas where we have a strong underwriting expertise. For us, GCS is not just about participating in a growing market, it is about actively scaling our differentiated platform. Finally, on our opportunity in Canada. The fundamentals of the economy are attractive, and we are one of just two players with a truly national presence, which gives us significant potential. In personal lines, we already have partnerships with two top Canadian brands.

Speaker #2: In commercial lines, we are still underweight in small business, so we are now deploying first-class digital trading capabilities from our UK business. We have also benefited from shared learnings in claims, saving almost 600 dollars per repair across 50 auto centers.

Speaker #1: And this model is already in action. We are expanding in Lloyd's and around the new Aviva Syndicates brand, and using our dual platform to create capabilities to share those One Aviva growth opportunities.

Speaker #1: More recently, we've strengthened our access to the US commercial lines market with an onshore presence. We are doing this in a controlled manner, focused only on areas where we have strong underwriting expertise.

Speaker #2: And we continue to expand our regional presence, particularly in attractive areas like Quebec. Canada is an essential part of the group, and attractive market, a fantastic business, and it has an exciting future.

Speaker #1: For us, GCS is not just about participating in a growing market; it's about actively scaling a differentiated platform. And finally, on our opportunity in Canada.

Speaker #2: So I hope that has given you a sense of just how much lies ahead. Let me conclude with Aviva's compelling investment case. We are unlocking the full potential of the direct line acquisition.

Amanda Blanc: Finally, on our opportunity in Canada. The fundamentals of the economy are attractive, and we are one of just two players with a truly national presence, which gives us significant potential. In personal lines, we already have partnerships with two top Canadian brands. Our most recent partnership with President's Choice gives us direct access to over 20 million customers. In commercial lines, we are still underweight in small business. So we are now deploying first-class digital trading capabilities from our UK business. We have also benefited from shared learnings and claims, saving almost CAD 600 per repair across 50 auto centers. We continue to expand our regional presence, particularly in attractive areas like Quebec. Canada is an essential part of the group, an attractive market, a fantastic business, and it has an exciting future.

Speaker #1: The fundamentals of the economy are attractive, and we are one of just two players with a truly national presence, which gives us significant potential.

Speaker #2: We have unrivaled customer reach with our leading franchise. Our AI opportunity is significant, given our scale and game-changing amounts of data. We have capitalized growth platforms in attractive markets with strong momentum and a clear right to win.

Speaker #1: In personal lines, we already have partnerships with two top Canadian brands. And our most recent partnership with President's Choice gives us direct access to over 20 million customers.

Amanda Blanc: Our most recent partnership with President's Choice gives us direct access to over 20 million customers. In commercial lines, we are still underweight in small business. So we are now deploying first-class digital trading capabilities from our UK business. We have also benefited from shared learnings and claims, saving almost CAD 600 per repair across 50 auto centers. We continue to expand our regional presence, particularly in attractive areas like Quebec. Canada is an essential part of the group, an attractive market, a fantastic business, and it has an exciting future. So I hope that has given you a sense of just how much lies ahead. Let me conclude with Aviva's compelling investment case. We are unlocking the full potential of the Direct Line acquisition. We have unrivaled customer reach with our leading franchise. Our AI opportunity is significant given our scale and game-changing amounts of data.

Speaker #1: In commercial lines, we are still underweight in small business, so we are now deploying first-class digital trading capabilities from our UK business. We have also benefited from shared learnings in claims, saving almost $600 per repair across 50 auto centers.

Speaker #2: And our diverse range of businesses delivers high quality and resilient earnings. And it's for all these reasons, that we have absolute confidence in our current targets, and full conviction in sustaining strong earnings growth beyond them.

Speaker #1: And we continue to expand our regional presence, particularly in attractive areas like Quebec. Canada is an essential part of the Group—an attractive market, a fantastic business, and it has an exciting future.

Speaker #2: Thank you for listening, and let's move to your questions.

Speaker #1: So I hope that has given you a sense of just how much lies ahead. Let me conclude with Aviva's compelling investment case. We are unlocking the full potential of the Direct Line acquisition.

Amanda Blanc: So I hope that has given you a sense of just how much lies ahead. Let me conclude with Aviva's compelling investment case. We are unlocking the full potential of the Direct Line acquisition. We have unrivaled customer reach with our leading franchise. Our AI opportunity is significant given our scale and game-changing amounts of data.

Speaker #1: Thank you for joining us on a Friday, 4 to Q&A. If you can state your name and the company that you work for, that would be great.

Speaker #1: So we'll start with Andrew Baker.

Speaker #1: We have unrivaled customer reach with our leading franchise. Our AI opportunity is significant, given our scale and game-changing amounts of data. We have capitalized growth platforms in attractive markets with strong momentum and a clear right to win.

Speaker #3: Hi. Thank you for taking my questions. It's Andrew Baker, Goldman Sachs. First one, just on UK personal lines. Are you able to give an update on the pricing versus claims inflation trends you're seeing in motor and home?

Amanda Blanc: We have capital-light growth platforms in attractive markets with strong momentum and a clear right to win. Our diverse range of businesses delivers high quality and resilient earnings. It is for all these reasons that we have absolute confidence in our current targets and full conviction in sustaining strong earnings growth beyond them. Thank you for listening, and let us move to your questions. Thank you for joining us on our quarterly Q&A. If you can stay to the end and the company review report, that would be great. We will start with Andrew Baker.

Speaker #3: And can I just confirm, the comment on, I think it's slide 10, on policy kind growth. Is that for direct line only, or is that sort of Aviva personal lines?

Speaker #1: And our diverse range of businesses delivers high-quality and resilient earnings. And it's for all these reasons that we have absolute confidence in our current targets, and full conviction in sustaining strong earnings growth beyond them.

Speaker #3: As a total? And then secondly, on the forward-looking PYD guidance, are you able to give us a sense of whether 26 combined ratio targets are included a PYD assumption?

Speaker #1: Thank you for listening, and let's move to your questions.

Speaker #3: And it feels like this is a bit of change in messaging versus the past. I guess, what led to this change in messaging, and why now?

Speaker #3: Thank you.

Speaker #2: Okay. Thanks. Andrew, so first of all, the usual update, I guess, on personal lines rating. So inflation is sort of mid-single digits. Which I think is sort of unchanged since where we were at the end of the first quarter.

Speaker #2: Thank you for joining us on Friday at a quarter to 11. If you can state your name and the company that you work for, that would be great.

Speaker #2: So, we'll start with: Hi, thank you for taking my questions. It's Andrew, Open Chat. First, I'm just—UK personal lines and Aviva—to give an update on the pricing, risk, and inflation trends you're seeing in virtual home, and just confirm the comment on the slide 10 policy and growth.

Speaker #2: But as we did last year, we are pricing we have been pricing ahead. So if we take you back to the end of 2025, when you had the Pearson Ham data was showing that the market was down on new business rates by 11%, and we were up one.

Andrew Baker: Hi, thank you for taking my questions. It is Andrew Baker with Goldman Sachs. First one just on UK personal lines. Are you able to give an update on the pricing versus claims inflation trends you are seeing in retro? I just could not find the comment on slide 10 on the policy handbook. Is that for Direct Line only? Is that sort of the personal lines? That is the first one. Secondly, on the forward-looking PYD guidance. The outlook sounds further to 2026 second-line measure targets that include the PYD assumption. It felt like this is a bit of a change in messaging versus the past. I guess what led to this change in messaging and why now? Thank you.

Andrew Baker: [inaudible]

Speaker #2: If we take it to the half year, the market was saying about 3.6 on rate up on motor, and we were up six. So I think what you're seeing here is our strong rating discipline but also we're very, very confident about the technical rating strength within the book on the basis of the solar repair network, the rates are starting to harden, but also the benefit of all the different distribution and the brands that we have.

Speaker #2: Is that for Direct Line only, or is that for Aviva personal lines as a whole? And then secondly, on the forward-looking Q1 and Q2 guidance.

Speaker #2: Do you have a clear sense whether, in 2026, the combination of targets included the Q1, the assumption, and the first ideas have a bit of change in question versus the past?

Speaker #2: And just what led to this change in question, and why now? Thank you.

Speaker #2: I don't know whether you want the home numbers as well. I mean, on home, to the end of last year, Pearson Ham data was showing minus 12 for the market.

Charlotte Jones: Okay, thanks, Andrew. First of all, the usual update, I guess, on personal lines rating. Inflation is sort of in its mid-single digits, which I think is sort of unchanged since where we were at the end of Q1. As we did last year, we have been pricing the hedge. If we take you back to the end of 2025 when you had the Pearson Ham data was showing that the market was down on new business rates by 11% and we were at 1%. If we take it to the H1, the market was sitting about 3.6% on rate up on motion. We were at 6%.

Amanda Blanc: Okay, thanks, Andrew. [inaudible]

Speaker #1: Okay, thanks. It's Andrew. So, first of all, the usual update, I guess, on personal lines rating. Inflation is sort of a mixing of digits.

Speaker #2: Aviva was flat. To the half year, the market is flat, and Aviva is up four. Again, same strength. One thing I would add here, and sort of Owen talked about this way more articulately than I do, is what we are really seeing is the benefit now of the huge amount of data that we have.

Speaker #1: So, which I think is sort of unchanged since where we were at the end of the first quarter. But as we did last year, we are pricing—we have been pricing ahead.

Speaker #1: So, if we take it back to the end of 2025, when you had the Pearson Town data showing that the market was down on new business rates by 11%, and we were up one.

Speaker #2: So when you've got twice the amount of data, the insights, the sophistication that you can put into the pricing, the benefit is really there.

Speaker #2: So we're able to make really good pricing decisions and exposure decisions around the vehicles that we want to ride, where we want to ride, so that I think that that is also we are also starting to see it's sort of unquantifiable, I guess, in the numbers, but we're definitely starting to see that as an advantage.

Speaker #1: If we take it to the half year, the market was saying about 3.6 on rate map on motion, we were up six. So I think what you're seeing here is a strong rating discipline, but also we have been very, very confident about the technical rating strength within the book on the basis of the solid repair network. The rates are starting to harden, but also the benefit of all the different distribution and the brands that we have.

Charlotte Jones: I think what you are seeing here is our strong rating discipline, but also we are very, very confident about the technical rating strength within the book on the basis of the Solus repair network. The rates are starting to harden, but also the benefit of all the different distribution and the brands that we have. I do not know whether you want the home numbers as well. On home to the end of last year, Pearson Ham data was showing -12%. The market, Aviva was flat. At the H1, the market is flat and Aviva is at 4%. Again, same strength. One thing I would add here, Owen talked about this maybe more articulately than I do, is what we are really seeing is the benefit now of the huge amount of data that we have.

Speaker #2: I think on slide 10, we were talking about direct line, but Charlotte will clarify that. On the forward-looking PYD. Yeah. So I suppose when we set the targets or the guidance for combined ratio for 2026, we very much set it at the overall level.

Speaker #1: I don't know about the home numbers as well. On home, to the end of last year, Pearson Town data was showing minus 12 for the market.

Speaker #2: So with all components in it. And at that point, I suppose I think we're clear that within that, we made no fundamental assumptions on PYD.

Speaker #1: Aviva was flat. For the half year, the market is flat and Aviva is up four. Again, the same strength. One thing I would add here, and sort of as we've talked about this when you articulated the ninety, is what we are really seeing is the benefit now of the huge amount of data that we have.

Speaker #2: However, what's important to understand is what I explained in my remarks earlier, is the interaction between the underlying and the overall caused by both the risk adjustment effect and the fact that our reserving is towards the top end of a best estimate range.

Speaker #1: So when you've got twice the amount of data, the insights—the sophistication that you can put into the pricing—the benefit is really there.

Charlotte Jones: So when you have got twice the amount of data, the insights, the sophistication that you can put into the pricing, the benefit is really there. So we were able to make really good pricing decisions and exposure decisions around the vehicles that we want to write, where we want to write. I think that we are also starting to see it is sort of unquantifiable, I guess, in the numbers, but we are definitely starting to see that as an advantage. I think on slide 10, we were talking about Direct Line, but Charlotte will clarify that. On the forward-looking PYD. Yes. I suppose when we set the targets or the guidance for combined ratio for 2026, we very much set it at the overall level. So with all components in it.

Speaker #1: So we were able to make really good pricing decisions and exposure decisions around the vehicles that we want to write, where we want to write.

Speaker #1: So I think that we are also starting to see—it's sort of unquantifiable, I guess, in the numbers—but we are definitely starting to see that as an advantage.

Speaker #2: So those do offset. So as we build risk adjustment, which is one to two points let's call it one and a half, something like that, that unwinds then through currents.

Speaker #1: I think on slide 10 we were talking about Direct Line, but I'm sure we'll clarify that on the forward-looking Q&A. Yeah, so I suppose when we set the target or the guidance for combined ratio for 2026, remember we set it at the overall level.

Speaker #2: So you've got to look at the two together. It's somewhat of a wash, but it is a structural positive to PYD if you're only applying your lens to PYD.

Speaker #2: And then if you're only applying your lens to underlying, you say, well, why is it it's got a bit of that rebuild in it.

Speaker #1: So with all components in it. And at that point, I suppose I think we're clear that within that, we may know fundamental assumptions on Q2.

Charlotte Jones: At that point, I suppose I think we are clear that within that we made no fundamental assumptions on PYD. However, what is important to understand is what I explained in my remarks earlier, is the interaction between the underlying and the overall caused by both the risk adjustment effect and the fact that our reserving is towards the top end of the best estimate range. So those do offset. So as we build our risk adjustment, which is 1 to 2 points, let us call it 1.5 or something like that unwinds then through current. So you have got to look at the two together. It is somewhat of a wash, but it is structural positive to PYD if you are only applying your lens to PYD.

Speaker #2: And it's the same with the balance sheet resilience. We are constantly making sure that the best estimate is because of the uncertainty that I explained earlier around the world and with direct line it's a sort of cautious end of that best estimate.

Speaker #1: However, what's important to understand, as I explained in my earlier remarks, is the interaction between the underlying and the overall, caused by both the risk adjustment effects and the fact that our reserving is towards the top end of our best estimate range.

Speaker #2: And that is being replenished. So what I don't want you to think is that the private year development that we're seeing this time is a release of reserves.

Speaker #2: There is an element of that coming through, but at the same time, we're rebuilding the resilience. Now, on top of that, you actually get claims experience can be different to what you reserve at.

Speaker #1: So those do offset. So, as we build risk adjustment—which is one to two points, let's call it one and a half, something like that.

Speaker #1: That unwinds then through current. So you've got to look at the two together. It's somewhat of a wash, but it is a structural positive to Q2 if you only apply your lens to Q2.

Speaker #2: And that, I can't predict what that is going to be. So there's an element of PYD that is completely it comes when it comes, depending on the actual experience.

Speaker #2: So I suppose I would say, I'm keen for you to understand that properly. And keen for you to understand an element of it as recycling and therefore a wash.

Speaker #1: And then if you're only applying your lens to underlying, you say, well, why is it that it's got a bit of that rebuild in it?

Charlotte Jones: Then if you are only applying your lens to underlying, you say, "Well, why is it?" It has got a bit of that rebuild in it. It is the same with the balance sheet resilience. We are constantly making sure that the best estimate is because of the uncertainty that I explained earlier around the world and with Direct Line, it is at the cautious end of that best estimate, and that is being replenished. So what I do not want you to think is that the prior year development that we are seeing this time is a release of reserves. There is an element of that coming through, but at the same time, we are rebuilding the resilience. On top of that, you actually get claims experience, which can be different to what you reserve at and I cannot predict what that is going to be.

Amanda Blanc: [inaudible]

Speaker #1: And it's the same with the balance sheet resilience. We are constantly making sure that the best estimate is—because of the uncertainty that I explained earlier around the world and with Direct Line—it's a sort of cautious end of that best estimate.

Speaker #2: And if the risk adjustment is one to two points, and you sort of take that as a point and a half, there's probably another bit as much as a point, but there's another bit that is that build and recycle coming through as well.

Speaker #1: And that is being replenished. So, what I don't want you to think is that the private year development that we're seeing this time is a release of reserves.

Speaker #2: On top of that, then there can always be PYD that's up or down that you don't predict. And then, of course, there's weather.

Speaker #1: There is an element of that coming through, but at the same time, we're rebuilding the resilience. Now, on top of that, actual claims experience can be different to what you reserve at.

Speaker #3: Farooq? Behind you, Andrew. Hi. Sorry, Andrew. Farooq Hanif from JP Morgan. Just wanted to clarify something on a comment you made on large losses.

Speaker #1: And that, I can't predict what that is going to be. So there's an element of the QYD that completely comes when it comes, depending on the actual experience.

Speaker #3: In the underlying loss ratio, are you able to sort of quantify that? Obviously, there's a bit of deterioration in loss ratio in Ireland and Canada, and in the UK on top of the direct line effect.

Charlotte Jones: So there is an element of the PYD that is completely, it comes when it comes, depending on the actual experience. I suppose I would say I am keen for you to understand that properly, and keen for you to understand an element of it is recycling and therefore wash. If the risk adjustment is 1 to 2 points, then you sort of take that as a point and a half. There is probably another bit, as much as a point, but there is another bit that is that build and recycle coming through as well. On top of that, then there can always be PYD that is up or down that you do not predict. Then of course, there is hard luck.

Speaker #1: So I suppose I would say I'm keen for you to understand that properly, and keen for you to understand that an element of it is recycling, and therefore wash.

Speaker #3: So I just wanted to understand whether we can model that going forward. Secondly, you don't mention international in your long-term view. In the slides, and I think we're all aware there's quite a lot of SCR invested in international.

Speaker #1: And if the risk adjustment is one to two points, and you sort of take that as a point and a half, there's probably another bit, as much as a point.

Speaker #3: So I'm wondering if you're able to or willing to comment on what you view as the future of that. And I know there's something going on potentially in India.

Speaker #1: But there's another bit, which is that build and recycle coming through as well. On top of that, there can always be QYDs that are up or down, which you don't predict.

Speaker #3: So I was wondering whether you can talk about that a little bit. And then kind of very last point, asset optimization, you mentioned it.

Speaker #1: And then, of course, there's one thing—I just want to clarify something on the common middle word versus the underlying loss ratio. Are you able to sort of quantify that?

Speaker #3: In the bulk annuity line, I mean, other companies are mentioning it a lot more and making a big thing out of it. What do you think of that?

Jeff Woolley: Philip, sorry. A further query from Jeff Woolley. I just want to clarify something on the common large losses in the underlying loss ratio. Were you able to quantify that? Obviously, there is a bit of deterioration in loss ratio underlying in kind of under the retail top of your Direct Line effect. I just want to understand what that looked like going forward. Secondly, you then mentioned international in your long-term view in the slides, and I think RSA Insurance Group have a lot of SCR invested in international. I wondered if you are able to comment on what you view as the future of that. I know that is something very well potentially they get asked. I was wondering whether you can talk about that a little bit. For a very last point, again, asset optimization, you had mentioned that and Mark had mentioned that earlier.

[Analyst] (Credit Suisse): [inaudible]

Speaker #3: What can you tell us about your view on that as a source of investment margin? Thank you.

Speaker #2: OK. So look, I think on large losses, as you rightly picked up or referred to it, so if we unpack that a little bit, in Canada, we saw large losses in SME mostly property.

Speaker #1: Obviously, there's a bit of deterioration in the loss ratio. I'm kind of a retailer on top of the Direct Line effect, so just want to understand whether we can log that going forward.

Speaker #2: And we saw some in GCS that were property. As well. I would say that they are specific idiosyncratic. When we see large losses, we always go back and look at the underwriting quality but we are here for our customers.

Speaker #1: Secondly, you don't mention international in your long-term view. In the slides—and I think otherwise on STR versus international—so are you able to comment on what you view as a feature of that?

Speaker #2: And when large losses come, they come. So there were they were quite a lot higher. Year on year in Canada, the large loss amount.

Speaker #1: I know there's something potentially going on in there. I was just wondering whether you can talk about that. And then the very last point, that's optimization.

Speaker #2: In the UK, there are a couple of things going on. So there are large losses again that were a little higher than long-term averages.

Speaker #1: You mentioned it. In the book, other companies have mentioned it a lot. You mentioned a good thing about it. What do you think of that?

Speaker #2: There were a little bit higher than long-term averages last year though. So the turnaround is less marked. I think it's maybe just a fraction of points.

Andrew Baker: Other companies are mentioning it a lot more or making a big thing out of it. What do you think about what can you tell us about your view on thousands of sources of guesswork logic? Thank you.

Speaker #1: What can you tell us about your sources of investment margin? Thank you. So, look, I think I might—just as you rightly picked it up, I referred to it.

Charlotte Jones: Okay. I think on large losses, as you rightly picked up, I referred to it. If we unpack that a little bit, in Canada, we saw large losses in SV, mostly property, and we saw some in GCS that were property as well. I would say that they are specific, idiosyncratic. When we see large losses, we always go back and look at the underwriting quality. We are here for our customers, and when large losses come, they come. They were quite a lot higher year-on-year in Canada, the large loss amount. In the UK, there are a couple of things going on. There are large losses again, that were a little higher than long-term averages. They were a little bit higher than long-term averages last year, though. The turnaround is less marked.

Speaker #2: Again, though, they are idiosyncratic in nature. And they were both commercial lines and personal lines. So there's quite a well-publicized fire at a steel factory, for example.

Speaker #1: So if we unpack that a little bit, in Canada we saw large losses in SME, mostly property, and we saw some in GCS.

Speaker #2: So again, they are idiosyncratic in nature and no particular concerns. I also referred to a one-off. So there is an intangible asset that we've written off from the balance sheet following a project that we discontinued.

Speaker #1: That was property, as well. I would say that they are specific, idiosyncratic. When we see large losses, we always go back and look at the underwriting quality. But we are here for our customers, and when large losses come, they come.

Speaker #2: And that's about 0.6 points. So those are kind of like the drivers of what's happening in the underlying. That is, large loss or specific balance sheet write-off items.

Speaker #1: So, they were quite a lot higher year on year in Canada—the large loss amount. In the UK, there are a couple of things going on.

Speaker #2: Other movement in the underlying is trading and managing margin obviously. That was the first question. The second question on international. Look, we classify it outside of the core markets because that is how we see it.

Speaker #1: So there are large losses again that were a little higher than long-term averages. They were a little bit higher than long-term averages last year, though.

Speaker #1: So the turnaround is less marked. I think it's maybe just a fraction of a point. Again, though, they are idiosyncratic in nature, and they were both first commercial lines and personal lines.

Charlotte Jones: I think it is maybe just a bit fraction of points. Again, though, they are idiosyncratic in nature, and they were both commercial lines and personal lines. There was quite a well-publicized fire at a steel factory, for example. Again, they are idiosyncratic in nature and no particular concerns. I also referred to a one-off. There is an intangible asset that we have written off from the balance sheets following a project that we discontinued, and that is about 0.6 points. Those are kind of the drivers of what is happening in the underlying that is large loss or specific to balance sheet write-off items. Other movement in the underlying is trading and managing margin, obviously. That was the first question. The second question on international. We classify it outside of the core markets because that is how we see it.

Amanda Blanc: [inaudible]

Speaker #2: We manage them for value certainly not for growth. You're right that in India, we're now own 100%. And that was triggered by there was a regulatory change over there that's enabled foreign participation at 100%.

Speaker #1: So, there's quite a well-publicised choir of steel factory, for example. So again, they are idiosyncratic in nature, with no particular concerns. I also referred to a one-off.

Speaker #2: We took advantage of that. That gives us clearly more strategic optionality. But there's no other update to say on that or on China at this point.

Speaker #1: So, there is an intangible asset that we've written off from the balance sheet following a project that we discontinued, and that's about 0.6 points.

Speaker #2: And then on asset optimization, we did have we see very much our job to get the right assets in place at the beginning. And we see it as being an underlying activity to continue to work on the back book and look at asset opportunities as they come up.

Speaker #1: So those are kind of the drivers of what's happening in the underlying. That is, large loss or specific to balance sheet write-off items.

Speaker #1: Other movement in the underlying is trading and managing margin, obviously. So that was the first question. The second question on international: look, we classify it outside of the core markets because that is how we see it.

Speaker #2: So yes, there was a relatively modest but important piece of asset optimization that came through this time. But we don't classify that as management action.

Speaker #1: We manage them for value, certainly not for growth. You're right that in India, we now own 100%, and that was triggered by a regulatory change over there that enabled foreign participation at 100%.

Charlotte Jones: We manage them for value, certainly not for growth. You are right that in India we now own 100%, and that was triggered by, there was a regulatory change over there that enabled foreign participation at 100%. We took advantage of that. That gives us clearly more strategic optionality, but there is no other update to say on that or on China at this point. On asset optimization, we see very much our job to get the right assets in place at the beginning, and we see it as being an underlying activity to continue to work on the backbone and look at asset opportunities as they come up. Yes, there was a relatively modest but important piece of asset optimization that came through this time. We do not classify that as management action.

Speaker #2: It is what we do. And it's about getting the right mix at the beginning and then managing it on an ongoing basis. So we don't have the same sort of headlines that some present.

Speaker #1: We took advantage of that. That gives us, clearly, more strategic optionality. But there's no other update to say on that, or on China, at this point.

Speaker #2: But that doesn't say we're not all over the asset optimization. It's just a different treatment.

Speaker #3: Have we got to Andrew?

Speaker #4: Good morning. It's Andrew Crean for Autonomous. Could you do a couple of things? Firstly, fill us in on what's happening in rates in UK commercial.

Speaker #1: And then on asset optimization, we see very much our job as getting the right assets in place at the beginning. We see it as being an underlying activity to continue to work on the backbone and look at asset opportunities as they come up.

Speaker #4: And then Canada, personal and commercial. And then secondly, you seem very bullish on wealth, both near-term and long-term. Can you give us a sense of well on track?

Speaker #4: Is that a euphemism for likely to be 280? And longer term, if you are that if you do feel there's that much of an opportunity, can you catch up in direct DTC platforms?

Speaker #1: So yes, there was a relatively modest but important piece of asset optimization that came through this time, but we don't classify that as a management action.

Speaker #4: Or does that take M&A?

Speaker #1: It is what we do, and it's about getting the right mix at the beginning and then managing on an ongoing basis, so we don't have the same sort of headlines that some present.

Speaker #2: OK. Thanks, Andrew. So rates in commercial lines. So what we're seeing here is that let me just try to find the right page here.

Charlotte Jones: It is what we do, and it is about getting the right mix at the beginning and then managing it on an ongoing basis. We do not have the same sort of headlines that some present. That does not say we are not all over the asset optimization, it is just a different treatment. Hope you got that here. For James, I agree with what Tom was thinking. Can you give us a sense for SG and assuming it is in line with what is happening in rates in the UK commercial, and then Canada, the best performance in commercial? Secondly, when you see very bullish on wealth, both near term to long term, can you give us a sense of when on the chart is that initialism sort of likely to be generated?

Speaker #2: So obviously, it depends by line of business. So what we have seen in the mid-market, which is around sort of 60% of the SME segment, was that's set by about 1%.

Speaker #1: But that doesn't say we're not all over the asset optimization. It's just a different treatment: commercial, and then Canada personal and commercial. And then secondly, we see very modest growth on wealth.

Speaker #2: That's benefited by higher retention. So I guess what you're seeing here is the inflationary provisions within the commercial lines portfolio basically meeting flattening. Does that offsetting the flat rate?

Speaker #1: There's near-term and long-term. Can you give us a sense of the weathering trend? Is that euphemism sort of likely to be? And longer-term, if you log that, if you do feel there's that much of an opportunity, can you catch up in direct DTC platforms or does that take away?

Speaker #2: So it's sort of flat rate. There is some decrease in SME where we have traded better than sorry, not traded as well. Sorry, I'm all over the place.

Speaker #2: I'm just trying to find the right page. So I'll give you the actual right numbers. But actually, the inflation is mid-single digits. Inflation provisions are covering that for the vast majority of the products.

Amanda Blanc: Longer term, if you are that, if you do feel there is that much of an opportunity, can you hedge up in direct D2C platforms or does that do it differently? Thanks, Andy. Rates in commercial lines. What we are seeing here is that, let me just try to find the right page here. It obviously depends by line of business. What we have seen in the mid-market, which is around 60% of the SME segment, was that is up by about 1%. That is benefited by higher retention. I guess what you are seeing here is the inflation reprovisions within the commercial lines portfolio basically meeting the flat rate. Is that offsetting the flat rate? So it is sort of flat rate. There is some decrease in SME where we have traded better than, sorry, not traded as well.

Speaker #2: Okay, thanks. Thank you. So, lately, commercial lines—what we're seeing here is that... just trying to find the right page here. Obviously, it depends by line of business.

Speaker #2: In terms of the rating strengths, the rating strengths are strong across virtually all of the product lines. So we're seeing price affecting mid-market is about minus 3.

[Analyst 1]: [inaudible]

Amanda Blanc: [inaudible]

Speaker #2: But the rate strength is over 100. We're seeing pricing in motor and digital down by sort of mid-single digits. Again, we are covering that covering inflation in the rating on that.

Speaker #2: So what we've seen in the mid-market, which is around sort of 60% of the SME segment, was that's up by about 1%. That's benefited by higher retention.

Speaker #2: So I guess what you're seeing here is the inflationary provisions within the commercial lines portfolio basically need to be flattened. Does that offset the flat rate?

Speaker #2: And then on the GCS, the I mean, there's about 20 different product lines. It's hard to give it all. But in essence, every product line apart from property and professional indemnity the rate strength is over 100%.

Speaker #2: So it's sort of a flat rate. Now, there's been some decrease in SME where we have traded better than—sorry, not traded as well. Sorry, I'm all over the place.

Speaker #2: I've made a right pig's ear of that. But I hopefully you've managed to get the broad sense of that because there's so many different numbers.

Amanda Blanc: Sorry, I am all over the place here. I am just trying to find the right page so I give you the actual right numbers. Actually, the inflation is mid-single digits. Inflation provisions are covering that for the vast majority of the product. In terms of the rating strength, the rating strengths are strong across virtually all of the product lines. We are seeing price effect in mid-market is about -3%, but the rate strength is over 100%. We are seeing pricing in motor and digital down by sort of mid-single digits. Again, we are covering that, covering inflation in the rating on that. On the GCS, I mean, there is about 20 different product lines, hard to do it all. But in essence, every product line apart from property and professional indemnity, the rate strength is over 100%. I have made a right pig's ear of that.

Speaker #2: I'm just trying to find the right place so I can give you the actual right numbers. But actually, the inflation is in single digits. Inflation provisions are covering that for the vast majority of the products.

Speaker #2: And I'm not looking at Jason to make sure I haven't misrepresented anything there. But that's pretty much the case. In terms of Canada, so on Canada, we are personal lines is we're still carrying good rate in Canada on personal lines.

Speaker #2: In terms of the rating strength, the rating strengths are strong across virtually all of the product lines. So we're seeing price affecting mid-market is about minus three.

Speaker #2: So that is sort of about 10% in the first half. And on yeah, 10% in the first half. On motor, and not team, can you just help me here?

Speaker #2: But the rate strength is over 100. We're seeing pricing in motor and digital down by sort of mid-single digits. Again, we are covering that, covering inflation in that the rating on that.

Speaker #2: Which page is this on? Is it 82? Yeah. OK, got it. Right. So on personal lines, it's that 10% in motor. I'll come back to home in a second.

Speaker #2: And then on the GCS, I mean, there's about 20 different product lines, so it's hard to give you all. But in essence, every product line apart from property and professional indemnity, the rate strength is over 100%.

Speaker #2: In SME in Canada, the rate is about 5% down on SME. 3 on GCS. And in total down about 4. But again, most of those product lines are covered by the inflation linked provisions.

Speaker #2: I've made the right piece here of that. But hopefully, you've managed to get the broad sense of that, because there are so many different numbers.

Amanda Blanc: But hopefully, you have managed to get the broad sense of that because there are so many different numbers. I am largely looking at Jason to make sure that I am not misrepresenting anything there. That is pretty much the case. In terms of Canada, on Canada, personal lines, we are still carrying good rating in Canada on personal lines. That is about 10% in the H1. Yeah, 10% in the H1 on motor. Team, can you just help me here? Which page is this on? Which page it is on? 82. Yeah. I will pepper it. Right. On personal lines, it is that 10% in motor. I will come back to home in a second. In SME in Canada, the rate is about 5% down on SME, 3% on GCS, and in total down about 4%.

Speaker #2: So on home, the rate outlook is 7% is what we are carrying on rate for 7%. And that includes indexation. Does that make sense?

Speaker #2: And I'm not even looking at Jason to make sure I haven't misrepresented anything, though, but that's pretty much the case. In terms of Canada—so on Canada, on personal lines, we still carry a good rating in Canada on personal lines.

Speaker #2: 6 in auto, sorry, and 7 in property. If you've got any of that, you'll have done really well. Because that is so complicated. But if you want any clarification, I can clarify.

Speaker #2: So that is sort of about 10% in the first half. And on—yeah, 10% in the first half. On motor, and not team, can you just help me here?

Speaker #2: I've now got it in front of me. Oh, sorry. Yeah. There's another question. Yes. IWR. So on yeah, we are very bullish on wealth.

Speaker #2: Which page is this on? Which page? It's page 82. Yeah. Okay. Got it. Right. So on personal lines, it's about 10% in motor. I'll come back to home in a second.

Speaker #2: And why is so? It's because in workplace, if we think about there's a billion pounds of regular contributions coming through on workplace, which is just sort of standard.

Speaker #2: In SME in Canada, the rating is about 5% down on SME, 3 on GCS. And in total, down about 4. But again, most of those product lines are covered by the inflation-linked provisions.

Speaker #2: The retention levels on the scheme is about 95 existing schemes is 95%. And we're continuing to win business on a regular basis. And we've got the Mercer stuff coming through.

Amanda Blanc: But again, most of those product lines are covered by the inflation-linked provisions. On home, the rate outlook is 7%, is what we are carrying on as rate for 7%, and that includes inflation. Does that make sense? 6% in auto, sorry, and 7% in property. If you have got any of that, you would have done really well because that is so complicated. But if you want any clarification, I can clarify. I have now got it in front of me. Also, there is another question as well. Yes. I covered a lot. Yeah, we are very bullish on wealth. Why is so is because in workplace, if we think about the there is GBP 1 billion of regular contributions coming through on workplace, which is just standard. The retention levels on the scheme is about 95%. On existing schemes is 95%.

Speaker #2: So when we say we're likely to beat I'm looking at the team and saying, we can see the line to the 280 million. And we've put a lot of investment, obviously, into this business over the last number of years.

Speaker #2: So, on Home, the rate outlook is 7%. That's what we are carrying on rate for — 7%. And that includes indexation. Does that make sense?

Speaker #2: And that investment does have peaked. And now we're looking to see how we take that forward from there, post 2028, more to follow in the session that we do in October.

Speaker #2: Six in auto—sorry—and seven in property. If you've got any of that, you've done really well, because they're so complicated. But if you want any clarification, I can clarify.

Speaker #2: On the catch-up on direct wealth. So look, I think here, the way that we're looking at this is that the information that's come from targeted support, the early days that we've sought the approval of the FCA to do pension in the early stages of targeted support.

Speaker #2: I've now got it in front of me. I also—yeah, there's another question. Yes, IWR. So, yeah, we are very bullish on wealth. And why is so?

Speaker #2: It's because in workplace, if we think about it, there's a billion pounds of regular contributions coming through on workplace, which is just sort of standard.

Speaker #2: So people who are in old pension products, putting them into new pension products. And then people who are under saving into their pension and how do we target them.

Speaker #2: The retention levels on the scheme are about 95%. On existing schemes, it's 95%. And we continue to win business on a regular basis. And we've got the most stuff coming through.

Speaker #2: The early days and it is very, very early days because we only started that in sort of in May are really, really encouraging with more people responding to that than they would do through the normal marketing campaign.

Amanda Blanc: We are continuing to win business on a regular basis. We have got the Mercer success coming through. When we say we are likely to beat, I am looking at the team and saying, we can see the line to the GBP 280 million. We have put a lot of investment, obviously, into this business over the last number of years. That investment has peaked. Now we are looking to see how we take that forward from there post 2028. More to follow in the session that we do in October. On the catch-up on direct wealth. Look, I think here, the way that we are looking at this is that the information that has come from targeted support, the early days that we have sought the approval of the FCA to do pension in the early stages of targeted support.

Speaker #2: So when we say we're likely to beat, I'm looking at the team and saying, we are— we can see the line to the £280 million.

Speaker #2: So we feel very confident in our ability to be able to connect our existing businesses, our workplace customers through to our direct wealth proposition.

Speaker #2: And we've put a lot of investment, obviously, into this business over the last number of years. And that investment has now peaked. Now we're looking to see how we take that forward from here.

Speaker #2: And we talked about the direct wealth sales coming primarily from Aviva customers. That's not just from IWR customers. It's coming from motor customers. It's coming from home customers.

Speaker #2: And it's also obviously coming from other wealth customers. So we believe that through using targeted support, using my Aviva, using the technology, and using AI and the opportunities that we have there, we believe that we can continue to organically grow that business without the need to do M&A.

Speaker #2: Post-2028, more to follow in the sessions that we do in October, on the catch-up on direct wealth. So look, I think here, the way that we're looking at this is that the information that's come from targeted support—the early days that we've sought the approval of the FCA to do pension in the early stages of targeted support.

Speaker #1: Abid.

Amanda Blanc: [inaudible]

Speaker #3: Hi. Hi, mornings. Abid Hussain from Premier Libre. I've got three questions, I think. The first one is on GI margins. If I normalize the margins for the reserve releases and the weather impacts for this year and last year, I think there's almost a 2 percentage points deterioration in the margin.

Speaker #2: So, people who are in old pension products, put them into new pension products. And then, people who are under-saving into their pension—how do we target them?

Amanda Blanc: So people who are in old pension products, putting them into new pension products, and then people who are undersaving into their pension, how do we target them? The early days, and it is very, very early days because we only started that in May, are really, really encouraging with more people responding to that than they would do through the normal marketing campaign. So we feel very confident in our ability to be able to connect our existing businesses, our workplace customers through to our direct wealth proposition. We talked about the direct wealth sales coming primarily from Aviva customers. That is not just from Aviva wealth customers. It is coming from motor customers, it is coming from home customers, and it is also obviously coming from other wealth customers.

Amanda Blanc: [inaudible]

Speaker #2: The early days of it—it's very, very early days because we only started that in, sort of, in May. It's been really, really encouraging, with more people responding to that than they would do through the normal marketing campaign.

Speaker #3: And outside of large losses, I think that might be the mix affect the impact of direct line, which I think was on a lower margin business.

Speaker #2: So we feel very confident in our ability to connect our existing businesses, our workplace customers, through to our direct wealth proposition.

Speaker #3: So I just want to sort of check that is the case. Or are you doing something else in terms of optimizing for the bottom line and perhaps relaxing your criteria on the margin side?

Speaker #2: And we talked about the direct wealth sales coming primarily from Aviva customers. That's not just from IWR customers—it's coming from motor customers, it's coming from home customers.

Speaker #3: So just any color on that. And then the second one, just coming back to the BPA IRRs. Thanks for the new disclosure. It's helpful to see the 18% IRR.

Speaker #2: And it’s also obviously coming from other wealth customers. So we believe that, through using targeted support, using My Aviva, using the technology, and using AI and the opportunities that we have there, we believe that we can continue to organically grow that business without the need to do anything.

[Analyst]: We believe that through using targeted support, using Aviva, using the technology, and using AI and the opportunities that we have there, we believe that we can continue to organically grow that business without the need to do M&A. Hi, Roland from Savills. Independent. I have three questions. The first one is on GI margin. What has helped lower the margins for the reserve releases and the one-off items for this year and last year? I saw there was a 2 percentage points deterioration in the last year. Outside of large losses, I think that might be the likes of Direct Line, which I think was a lower margin business. Just to check if that is the case or are you doing something else in terms of optimizing for the lower line and perhaps relaxing your criteria on the margin side?

Speaker #3: But just on the lifetime IRR, I suspect it's higher than that. And peers are now quantifying management actions of sort of 4% to 500 million.

[Analyst] (Savills): [inaudible]

Speaker #3: I think I used to put in around sort of 100% to 200 million for yourself. So there is a big delta opening up between yourselves and peers.

Speaker #3: So just wondering if you have plans to address that over the medium to long term. And then just finally on AI, it looks like it's now more deeply embedded in the business.

Speaker #2: And last year, I think it's almost a 2% determination margin. I think that might be the mix of Direct Line, which I think was a margin business. That's also the case when you do something else in terms of optimizing for the online and perhaps for that single criteria on the margin side.

Speaker #3: I'm just wondering what sort of guardrails do you have in place? I've heard of teams burning through tokens over a weekend. Relative to the annual budget, burning the annual budget in a weekend.

Speaker #3: So just wondering how do you ensure that this is a net positive to the bottom line? And what sort of guardrails do you have?

Speaker #2: OK. Let me start with the first two. Yeah. So look, on GI margin, I mean, if I take UK, which I think is where your focus is, underlying core changed by about 1.6 points.

Speaker #2: So, just a tiny note. And the second one, just coming back to EPA IRR in the context of the disclosures—how important is the 18% IRR? Just on the lifetime IRR, I suspect it's higher than that.

Speaker #2: If I don't repeat all the stuff I talked about in terms of the assets and the large losses, then there's probably a residual of that 1.6 is probably a little under a point of movement.

Speaker #2: And K's IRR is 0.5. Graduation from 400 to 500 million. I think that used to put in around 100 to 200 million for yourself. So there's a bit better opening up between yourself and peers.

Speaker #2: So just wondering if you have plans to address that within the long term. And then just finally, on AI—it looks like it's now more deeply embedded in the business.

Speaker #2: I would say that is manageable margin compression. As you would expect as we trade sensibly in softer market. And because softer markets and because we've got good rate adequacy, we can afford to do that.

Speaker #2: I'm just wondering also about wealth. Do you have any cases of teams earning in free countries that we can relatively budget? I'm just wondering, how do you show that this is a very positive, online sort of wealth you have?

Speaker #2: I think the direct line business improvement I mean, this time last year, we had no direct line in the half year. And it came onto the books.

Speaker #1: Okay, let me start on the first two. Yeah, so look, on GI margin — I mean, if I take the UK, which I think is where your focus is — underlying core changed by about 1.6 points.

Speaker #2: We were clear that we weren't totally happy with it. And we've been taking action. So some of that is earning through. But compared to a year ago when we had no direct line, with a business that was still working on, you can imagine that that's had a little effect on the margin as well.

Charlotte Jones: Just on a high level. Secondly, just coming back to BPA IRR. I saw in your disclosure, I saw from the CD, 18% IRR, but just over the lifetime IRR, I suspect it is higher than that. Peers IRR, quote unquote, "provide management actions" of GBP 400 million to GBP 500 million. I think that used to be around GBP 100 million to GBP 200 million for yourselves. There is a big delta there between yourselves and peers. Just wondering if you have a pattern opportunity to address that in the medium to long term. Finally on AI. It looks like it is now more deeply embedded in the business. I just wonder what sort of guardrails do you have in place? I have heard of teams paying for tokens until we count it, basically having a budget, having an annual budget it will count as one thing.

Charlotte Jones: [inaudible]

Charlotte Jones: How do you ensure that this is a net positive on the line and what sort of guardrails you have? Let me start with the first two. On GI margin, if I take UK, which I think is where your focus is, underlying core changed by about 1.6 points. If I do not repeat all the stuff I have talked about in terms of the assets and the large losses, then there is probably a residual of that 1.6 is probably a little under a point of movement. I would say that is manageable margin compression, as you would expect as we trade sensibly in softer markets. Because we have got good rate adequacy, we can afford to do that. I think the Direct Line business improvement, I mean, this time last year, we had no Direct Line in the H1. It came onto the books.

Charlotte Jones: [inaudible]

Speaker #2: So all of that is actively managed underwriting discipline. But you've got to trade in the market. And where we are in the cycle, you're going to see a little bit of margin compression.

Speaker #1: If I don't repeat all the stuff I talked about in terms of the assets and the large losses, then there's probably a residual of that 1.6—it's probably a little under a point of movement.

Speaker #2: But we can afford that. So that's that one. On the BPA metric and the rationale we've given here, we just wanted to be completely clear on how we do it.

Speaker #1: I would say that is manageable margin compression, as you would expect as we trade sensibly in a softer market. Because in softer markets, given that we've got good rate adequacy, we can afford to do that.

Speaker #2: It is 18% that we've given for the half year number. It's a lifetime IRR. It has no management actions assumed. So if we do have management actions, that will give us some potential upside.

Speaker #1: I think the Direct Line business improvement—I mean, this time last year, we had no Direct Line in the half-year, and it came onto the books.

Speaker #2: And I suppose given this year, we took I think in the walk on the solvency, I talk about there probably being about 3. Still to come from management actions.

Speaker #1: We were clear that we weren't totally happy with it, and we've been taking actions. Some of that is earning through, but compared to a year ago, when we had no direct line with a business that was still working on—you can imagine that that's had a little effect on the margin as well.

Charlotte Jones: We were clear that we were not totally happy with it, and we have been taking action. Some of that is earning through. Compared to a year ago when we had no Direct Line with a business that we are still working on, you can imagine that that has had a little effect on the margin as well. All of that is actively managed underwriting discipline that you have got to trade in the market. Where we are in the cycle, you are going to see a little bit of margin compression, but we can afford that. That is that one. On the BPA metric and the rationale we have given here, we just wanted to be completely clear on how we do it. It is 80% that we have given for the H1 number. It is a lifetime IRR. It has no management actions assumed.

Charlotte Jones: [inaudible]

Speaker #2: And we've got about 100 million already in the first half. So management actions are expected to come. But they're not reflected within the methodology.

Speaker #1: So, all of that is actively managed underwriting discipline that you've got to trade in the market. And where we are in the cycle, you're going to see a little bit of margin compression.

Speaker #2: I'd also say that and I think I said it in the opening remarks, but just for emphasis the first half was characterized by small deals, which have higher margins.

Speaker #1: But we can afford that, so that's that one. On the BPA metric and the rationale we've given here, we just wanted to be completely clear on how we do it.

Speaker #2: The strain was lower as well. As we look at what's moved us to the 1.9, where we are now, there's some bigger deals in there.

Speaker #2: So you'd expect that IRR to come back down as we head towards the year because that's the nature of the trading we're doing. But still, above the low sorry, the low teens.

Speaker #1: It is 18% that we've given for the half-year number. It's a lifetime IRR. It has no management actions assumed. So, if we do have management actions, that will give us some potential upside.

Charlotte Jones: If we do have management actions, that will give us some potential upside. I suppose given this year we talked, I think in the walk on the solvency, I talk about there probably being about 3 points still to come from management actions, and we've got about GBP 100 million already in. Management actions I expect to come, but they're not reflected within the methodology. I would also say that, and I think I said it in the annual report, but just for emphasis, the H1 was characterized by small deals which have high margin. The strain was lower as well. As we look at what's moved us to the 1.9 where we are now, there's some bigger deals in there.

Charlotte Jones: [inaudible]

Speaker #2: So 18 coming down a bit, but still above the hurdle. And we just wanted to be really transparent on how we do it and give you an illustration.

Speaker #1: And I suppose, given this year, we talked I think in the walk on the solvency. I talked about probably being about 3, still to come from management actions.

Speaker #2: Because it came up quite a lot before. And there's a lot of different types of numbers out there in the market. So now armed with our transparency, maybe you can ask others about it.

Speaker #1: And we've got about $100 million already in the first half. So, management actions—I expect them to come, but they're not reflected within the methodology.

Speaker #2: And on the AI being deeply embedded, yeah. I mean, yes, obviously, it is. And has been for a very, very long time. And I think you would specifically be talking about token usage.

Speaker #1: I would also say that, and I think I said it when we were apart, but just for emphasis: the first half was characterised by small deals, which have high margin.

Speaker #2: And a part, obviously, from having to restrict Charlotte's usage of Claude, which she's become slightly obsessed with. We are monitoring the cost in exactly the same way as we are monitoring all of the other costs within the business.

Speaker #1: The strain was lower as well. As we look at what's moved us to the 1.9, where we are now, there are some bigger deals in there.

Speaker #2: And we don't we definitely see this. You're absolutely right. There is a definite benefit from AI in terms of revenue. And also, efficiency. But there's also a cost to AI.

Speaker #1: So you'd expect that IRR to come back down as we head towards the year, because that's the nature of the trading we're doing. But still, above the low—sorry, the low teens.

Amanda Blanc: You'd expect that IRR to come back down as we head towards the year because that's the nature of the trading we're doing, but still above the low teens. So 18 coming down a bit, but still above the hurdle. We just wanted to be really transparent on how we do it and give you an illustration because it came up quite a lot before, and there's a lot of different types of numbers out there in the market. Now armed with our transparency, maybe we can ask others about it. On the AI being deeply embedded, yes. I mean, yes, obviously it is and has been for a very, very long time. I think you would specifically be talking about the token usage apart, obviously, from having to restrict Charlotte's usage of Claude, which she's become slightly obsessed with.

Amanda Blanc: [inaudible]

Speaker #2: And everybody talks about the first two, and not about the third one. We are very, very actively looking at all of those three levers.

Speaker #1: So, 18 coming down a bit, but still above the hurdle. And we just wanted to be really transparent on how we do it and give you an illustration, because it came up quite a lot before.

Speaker #2: And hopefully, with what we've shown you, you've seen that all the projects of everything that we're doing, we're looking at the ROI. We're looking at when the returns.

Speaker #2: And then we're seeing, OK, well, what will be the future cost for us to be able to run these models? And we've already got that in many respects with the machine learning models that the teams are using for pricing.

Speaker #1: And there are a lot of different types of numbers out there in the market. So now, armed with our transparency, maybe we can ask others about that. And on the AI being deeply embedded, yeah.

Speaker #1: And sorry, Abid, did you actually ask for guidance on the management actions as well?

Speaker #1: I mean, yes, obviously it is and has been for a very, very long time. And I think you would specifically be talking about the token usage.

Speaker #2: Oh, sorry.

Speaker #1: Yeah.

Speaker #1: And apart, obviously, from having to restrict Charlotte and the usage of Claude, which she's become slightly obsessed with. We are monitoring that in exactly the same way as we are monitoring all of the other costs within the business.

Speaker #2: Yeah.

Speaker #1: Yeah. So for this year, we've done about 100 at the half year. I guided through the three points sort of the second of that translates to about another yeah, another 150 or so.

Amanda Blanc: We are monitoring the costs in exactly the same way as we are monitoring all of the other costs within the business. We definitely see this. You're absolutely right. There is a definite benefit from AI in terms of revenue and also efficiency, but there's also a cost to AI. Everybody talks about the first two and not about the third one. We are very actively looking at all of those three levers, and hopefully with what we've shown you've seen that in all of the projects of everything that we're doing, we're looking at the ROI, we're looking at the returns, and then we're seeing, okay, what will be the future cost for us to be able to run these models? We've already got that in many respects with the machine learning models that the teams are using for pricing.

Amanda Blanc: [inaudible]

Speaker #1: And we don't—we definitely see this. You're absolutely right. There is a definite benefit from AI in terms of revenue, and also efficiency, but there's also a cost to AI.

Speaker #1: So it's going to be a bit more than the 200 guidance. As you go forward, I would still slot into the model 200 for the moment.

Speaker #1: And everybody talks about the first two and not about the third one. We are very, very actively looking at all of those three levers.

Speaker #1: Obviously, some years are higher. Last year was particularly high, for instance. And but that order of magnitude as we work through and balance the opportunities.

Speaker #1: And hopefully, with what we've shown you, you've seen that with all the projects—everything that we're doing—we're looking at the ROI. We're looking at the returns.

Speaker #1: And then we're seeing, okay, well, what would be the future cost for us to be able to run these models? And we've already got that, in many respects, with the machine learning models that the teams are using for pricing.

Speaker #3: And Naseeb?

Speaker #4: Hi. Naseeb Ahmed from UBS. So firstly, on the 11% EPS carrier excluding direct line and share buybacks, there's about 7%. I just wanted to unpack that on where that's coming from in terms of the businesses.

Speaker #1: So did you actually ask for guidance on the management actions as well? Awesome. Yeah. Yeah. Yeah. So for this year, we've done about 100 at the half year.

Charlotte Jones: Sorry, did you actually ask for guidance on the management actions as well, Ash? Yes. So for this year, we've done about 100 at H1. I've guided to the 3 points. So for the second year, that translates to about another 150 or so. So it's going to be a bit more than the 200 guidance. As you go forward, I would still slot into a model of 200 for the moment. Obviously, some years are higher. Last year was particularly high, for instance. That order of magnitude as we work through balance sheet opportunities. I think that's it.

Charlotte Jones: [inaudible]

Speaker #4: And the background for the question is, I feel like BPA has held retirement is seeing headwinds. So about 50% of your business is seeing headwinds.

Speaker #4: So where do you get the underlying 7% over the planned period, if you can break that down? Secondly, coming back to the risk adjustment, I was looking at the disclosure in the pack where over the first half, I think it's only 20 million of release net of reinsurance.

Speaker #1: Guided to the third sort of the second electron, six to about another—yeah, another 150 or so. So, it's going to be a bit more than the 200 guidance.

Speaker #4: And you're guarding to 1 to 2 points, which is 70 to 140. So is the first half kind of a one-off low release? And then finally, on the best estimate range, can you give us a percentage range on is it kind of 5% above the midpoint of the range that you're talking about, Thanks.

Speaker #1: As you go forward, I would still slot into model 200 for the moment. Obviously, some years are higher. Last year was particularly high, for instance.

Speaker #1: And, but that order of magnitude, as we work through, balances your opportunities. Right. That's rather familiar. So, firstly, on the 11% EPS growth, excluding our timing and shop adverts, whatever.

[Analyst]: All right. That is it on my side. Firstly, on the 11% EPS, it has clearly got a tie and share buyback. So it is 100%. I just wanted to unpack that a little bit, where that is coming from in terms of businesses. The backbone to the question is, I feel like the BPA is how Retirement is seeing headwinds. About 50% of your business is seeing headwinds. Where are you getting the other 9, 10% over the time period that you can break that down? Secondly, on the risk adjustment, as you have those challenges where you immediately unpack where over the H1, I think you saw that kind of million release, million charge. You divided it into good products, which are 17.1 quality. Is the H1 kind of full on loss for the release?

[Analyst 2]: [inaudible]

Speaker #2: OK. So look, the guidance that we've given on the 11% towards the target, as you say, is split 2 from the share count reduction, 2 from the direct line synergies, and another 7 from underlying growth.

Speaker #1: I just wanted to unpack that in terms of how this comes in front of the businesses. And the backdrop to the question is, it feels like BPA has held—retirement has basically had.

Speaker #2: And we would expect, as we move to more capital light, that that's supporting some of that. I think sorry, Amanda. I'm glitching now. I think in terms of this half year, you've got higher share count coming in after we issued for the direct line.

Speaker #1: So about 50% of the businesses seem to have also waited at the end of the last 7% over the time period. Let me break it down.

Speaker #1: And secondly, going back to the risk adjustment, as you can see in the disclosure in the pack, over the first half I think it's only £20 million of release that we chose.

Speaker #2: You've then got a little bit of movement coming from the buyback that we've done. So it's hard to show the same split in this first half.

Speaker #1: And regarding the first to second quarters, which is 72 or 14, is the first half kind of a one-month low release? And then finally, on the best estimate range, can you give us a percentage range, kind of 5% above the midpoint of the range that you talked about?

[Analyst]: Finally, on your best estimate range in terms of percentage range, are you looking at a 5% above the midpoint of the range that you got last on any pillar that would have been helpful. Thanks.

Speaker #2: As over the second half, the share count will remain stable. And that effect will be smoother. But what I mean, I've got a bunch of different analysis that show exactly where the EPS development is coming from in this period.

Speaker #1: Any additional insights on that would be helpful.

Charlotte Jones: Okay. The guidance that we have given on the 11% towards the target, as you say, is split 2% from share count reduction, 2% from the Direct Line synergies, and another 7% from underlying growth. We would expect as we move to more capital light, that is supporting some of that. Sorry, Maya. Thank you for the question. I think in terms of this H1, you have got higher share count coming in after we issued for the Direct Line. You have then got a little bit of movement coming from the buyback that we have done. So it is hard to show the same split in this H1. As over the H2, the share count will remain stable, and that effect will be smoother. I have got a bunch of different analysis that show exactly where the EPS development is coming from in this period.

Charlotte Jones: [inaudible]

Speaker #2: Okay, so look, the guidance that we've given on the 11% towards the target, as you say, is split: two from share count reduction, two from the direct line synergies, and another seven from underlying growth.

Speaker #2: And it is coming from the benefits of turning around direct line. It's coming from the benefits of the improved performance in health and wealth.

Speaker #2: And we would expect, as we move to more capital-light, that that's supporting some of that. Sorry, Mike. I think, in terms of this half-year, you've got a higher share count coming in after we issued for the Direct Line.

Speaker #2: So it is across the group. And so I suppose I'm not going to give you a specific breakdown. But it has got all those components.

Speaker #1: But if you think about the opportunity, so I think you mentioned there that there were headwinds in BPA health and retirement. Don't confuse the fact that we're not going to hit the 100 million on health as the sort of headwinds.

Speaker #2: You've then got a little bit of movement coming from the buyback that we've done, so it's hard to show the same split in this first half.

Speaker #1: The actual profit trading performance is really strong in health. And we see real opportunity for health to continue to grow. So I think health is still a growth engine within the business.

Speaker #2: As over the second half, the share count will remain stable and that effect will be smoother. But what I mean is, I’ve got a bunch of different analyses that show exactly where the EPS development is coming from in this period.

Speaker #1: On retirement, it's really strong growth in individual annuities, really strong growth in equity release, less capital strain on the bulk business, but still the opportunity to write business.

Speaker #1: And that is not going to be an impact for the three-year target. The amount of bulk volume that we write. And as Charlotte said, there's really strong momentum in wealth.

Speaker #2: And it is coming from the benefits of turning around Direct Line. It's coming from the benefits of the improved performance in Health and Wealth.

Charlotte Jones: It is coming from the benefits of turning around Direct Line. It is coming from the benefits of the improved performance in health and wealth. So it is across the group. I suppose I am not going to give you a specific breakdown, but it has got all those components. If you think about the opportunity set, I think you mentioned there that there were headwinds in BPA Health and Retirement. Do not confuse the fact that we are not going to hit the GBP 100 million on health as the headline. The actual profit trading performance is really strong in health, and we see real opportunity for health to continue to grow. So, I think health is still a growth engine within the business.

Charlotte Jones: [inaudible]

Speaker #1: And even post the 2028 period, we feel really confident that with GCS, with health, with Canada, with UKGI, with the turnaround of direct line, and layer on top of that, the benefit of the customer advantage and the AI opportunity, we are very confident.

Speaker #2: So it is across the group. And so, I suppose I'm not going to give you a specific breakdown, but it has got all those components.

Speaker #2: If you think about the opportunity search, I think you mentioned that there were headwinds in BPA, health, and retirement. Now, don't confuse the fact that we're not going to hit the £100 million on health as the sort of headwind.

Speaker #1: That was the reason that we wanted to talk today about the post-2028. Because we could see that investors were asking us, OK, we get the after 2028.

Speaker #1: But post-2028, what is there? And we think there's lots. So we are very, very confident about that. Sorry to interrupt.

Speaker #2: The actual profit trading performance is really strong in Health, and we've seen real opportunity for Health to continue to grow. So I think Health is still a growth engine within the business.

Speaker #2: No, that's all right. But and I would say combination of margin expansion and top line growth. And that's across the different areas. So margin expansion is definitely direct line.

Speaker #2: On retirement, it's really strong growth in individual annuities and really strong growth in equity release. There's less capital strain on the box business, but still the opportunity to make business.

Amanda Blanc: On Retirement, really strong growth in individuals and Groups, really strong growth in equity release, less capital strain on the BPA business, but still good opportunity to write business. That is not going to be an impact for the three-year targets, the amount of BPA volume that we write. As Charlotte said, there is really strong momentum in wealth. Even post the 2028 period, we feel really confident that with GCS, with health, with Canada, with new PGI, with the turnaround of Direct Line, and layer on top of that the benefit of the customer advantage and the AI opportunity, we are very confident. That was the reason that we wanted to talk today about the post-2028. We could see that investors were asking us, "Okay, we get up to 2028, but post-2028, what is there?" We think there is lots.

Amanda Blanc: [inaudible]

Speaker #2: It's definitely all of the work we're doing in operational leverage. And then top line examples would be wealth, GCS, those areas. So I think it's a good quality mix.

Speaker #2: And that is not going to have an impact on the three-year target, the amount of box volume that we write. And as Charlotte said, there’s really strong momentum in Wealth.

Speaker #2: But we don't button it all because it's a diversified group. And we're looking for the opportunities. And we move accordingly. I think your risk adjustment number is just wrong.

Speaker #2: And even post the 2028 period, we feel really confident that with GCS, with Health, with Canada, with UKGI, with the turnaround of Direct Line, and, layered on top of that, the benefit of the customer advantage and the AI opportunity, we are very confident. That was the reason that we wanted to talk today about the post-2028 period.

Speaker #2: So why don't we take that offline? It's about a point and a half for this first half. So you must be reading the disclosures so if they're not clear, then we'll help you through that.

Speaker #2: So maybe talk about that afterwards. And then I think best estimate again, it's a best estimate. So I'm certainly not going to give you another percentage other than a sort of best estimate.

Speaker #2: Because we can see that investors were asking us, "Okay, we get that after 2028, post-2028, what is there?" And we think there's a lot, right?

Charlotte Jones: We are very confident about that side. No, sorry. I would say combination of margin expansion and top-line growth, and that is across the different areas. Margin expansion is definitely Direct Line. It is definitely all of the work we are doing in operational leverage. Top-line examples would be more wealth, GCS, those areas. I think it is a good quality mix. We do not button it all because it is a diversified group, and we are looking for the opportunities, and we move accordingly. I think your risk adjustment number is just wrong. Why do not we take that offline? It is about a point and a half for this H1, so you must be reading the disclosures. If they are not clear, then we will help you through that. Maybe talk about that afterwards.

Speaker #2: So we are very, very confident about that. Sorry to get in the way.

Speaker #2: However, what I said earlier was if you think about how it's going to build and unwind, if it's between 1 to 2 points for the risk adjustment, let's call that 1 and 1/2, let's say it's just under a point for the build of reserve and unwind of that, but I'm not going to give you another confidence level statistic like the one we have for risk adjustment for the best estimate.

Charlotte Jones: [inaudible]

Speaker #1: No, sorry.

Speaker #2: But, and I always say, it's a combination of margin expansion and top-line growth, and that's across the different areas. So margin expansion is definitely a direct line.

Speaker #2: It's definitely all of the work we're doing on operational leverage. And then top-line examples would be Wealth, GCS, those areas. So I think it's a good quality mix.

Speaker #2: But we don't button it all because it's a diversified group, and we're looking for the opportunities, and we move accordingly. I think your risk adjustment number is just wrong.

Speaker #4: Keller.

Speaker #3: Hi, morning. Caleb's Ministry, Bank of America. Two questions. Just on slide 16, you talk about improvement in the distribution ratio. Obviously, we can sort of factor in the improvement from the direct line synergies, et cetera.

Speaker #2: So why do we take that offline? It's about a point and a half for this first half. So, you must be reading the disclosures.

Speaker #3: But can you talk a little bit about how you're thinking about the benefits from AI, et cetera, and how we should think about building that into the distribution ratio?

Speaker #2: So, if they're not clear, then we'll help you through that—so maybe talk about that afterwards. And then I think the best estimate, again, it's the best estimate.

Charlotte Jones: I think best estimate, again, it is a best estimate, so I am certainly not going to give you another percentage other than a sort of best estimate. However, what I said earlier was if you think about how it is going to build and unwind, if it is between one to two points for the risk adjustment, let us call that one and a half. Let us say it is just under a point for the build of reserve and unwind of that. I am not going to give you another confidence level statistic like the one we have for risk adjustment for the best estimate.

Charlotte Jones: [inaudible]

Speaker #3: The second question is on Amanda's point about multi-holding multi-product holding customers. I think you said there were 7 million at the moment. Number one, I guess, where do you expect that to go over a couple of years?

Speaker #2: So I'm certainly not going to give you another percentage other than a sort of best estimate. However, what I said earlier was if you think about how it's going to build in and wind, if it's between 1 to 2 points for the risk adjustment, let's call that 1 and a half, let's say it's just under a point for the build of reserve and wind up that, but I'm not going to give you another confidence level statistic like the one we have for risk adjustment for the best estimate.

Speaker #3: And what is the average number of products each of those customers hold currently? And again, what is realistic to what is realistic going forward there?

Speaker #3: And again, how does that then factor into the sort of distribution ratio given your comments about lower acquisition costs, et cetera? Thank you.

[Analyst] (Credit Suisse): Good morning from Credit Suisse, Ben from America. Two questions. On slide 16, you talk about the improvement in the distribution ratio. Obviously, we can sort of factor in the improvement from the direct lines, which is, et cetera. Can you talk a little bit about how you are thinking about the benefits from AI, et cetera, and how we should think about building that into the distribution ratio? The second question is on Amanda's point about multi-product holding customers. I think you said there was 7 million at the moment. Number one, I guess, when do you expect that to go or a couple of years? What is the average number of products each of those customers hold currently and again, what is realistic in terms of order? What is realistic going forward?

[Analyst] (Credit Suisse): [inaudible]

Speaker #2: I'm going to pick up the phone for Charlotte. I'll pick up the second one.

Speaker #1: Yeah. I mean, I'm not going to give you a specific number. I mean, I think that the reality of it is all the work that we're doing on that are helping whether it's the claims activity or the virtual assistant type.

Speaker #2: Two questions. Just on slide 16, it talked about improvements in distribution ratio. Obviously, we didn't factor in the improvement from the direct lines release, etc., but can you talk a little bit about how you're thinking about the benefits from AI, etc., and how much you think about building that into the distribution ratio?

[Analyst] (Credit Suisse): And again, how does that then factor into the distribution ratio given your comments about lower acquisition costs, et cetera? Thank you.

Speaker #1: They were all helping with the acquisition cost and enabling the cost base we have today to go further and owen in particular is completely relentlessly focused on that ratio in the personal line side.

Charlotte Jones: I will take the first question. I will take up the second. I am not going to give you a specific number. I think that the reality of it is all the work that we are doing that are helping, whether it is the claims activity or the virtual assistants, they are all helping with the acquisition cost and enabling the cost base we have today to go further. Owen in particular, is completely relentlessly focused on that ratio in the personal line side. Then if you take the commercial line side, some of that work we are doing on AI that is really connecting us brilliantly with the broker, really spotting which brokers give us the business and really working through that. All of that combined is going to eat away at that cost of acquisition. So internally, we are measuring that, but I am not going to give you a specific guidance.

Charlotte Jones: [inaudible]

Speaker #2: The second question is on—we just talked about multi-holding, multi-product holding customers. I think you said there are 7 million at the moment. Number one, I guess, where do you expect that to go in a couple of years?

Speaker #1: And if we take the commercial line side, some of that work we're doing on AI that is really connecting us brilliantly with the broker, really spotting which brokers give us the business and really working through that, all of that combined is going to eat away at that cost of acquisition.

Speaker #2: And what is the average number of products each of those customers have? Currently—again, what is realistic to us? What is realistic going forward?

Speaker #1: And so internally, we're measuring that. But I'm not going to give you a specific guidance. But those will be the drivers of what improves that.

Speaker #2: And again, how does that then factor into the sort of distribution ratio, given your comments about the acquisition cost, etc.?

Speaker #1: In terms of investor, Charlotte, I think it's second.

Speaker #2: OK. And then on the multi-product holding, so if we think about the UK 22 million customers, so we've got 4.7 we had 4.7 million multi-product customers in 2022.

Speaker #2: Yeah, I mean, I'm not going to give you a specific number. I think the reality of it is all the work that we're doing on that is helping, whether it's the claims activity or the virtual assistant type—they're all helping with the acquisition cost and enabling the cost base we have today to go further. And our team in particular is completely, relentlessly focused on that ratio on the personal lines side.

Speaker #2: That's increased to 7.2 million today. Which does include the impact of the direct line acquisition. And it would so it would have moved from 4.7 million to 5.6 million excluding direct line to just give you that number.

Speaker #2: 46% of new sales are to existing customers. So I think that sort of stresses the importance. And just to give you the flavor here, so for a multi-product holding customer, the cost per acquisition is 30% lower.

Speaker #2: And if you take the commercial line side, some of that work we're doing on AI—that is really connecting us brilliantly with the broker, really spotting which brokers give us the business and really working through that—all of that combined is going to eat away at that cost of acquisition.

Speaker #2: So I guess that shows just how efficient the marketing spend is there. Because obviously, we know a lot about those customers. And therefore, it's very targeted in a way that we speak to them.

Speaker #2: And so, internally, we're measuring that, but I'm not going to give you specific guidance. But those will be the drivers of what improves that.

Speaker #2: We also have better retention rates. So the retention rate is about 1.7 points higher than if you're a non-multi-product holding customer. And then they engage more.

Amanda Blanc: Those will be the drivers of what improves that. Okay. Then on the multi-product holdings. If we think about the UK at the 22 million customers, so we had 4.7 million multi-product customers in 2022. That is increased to 7.2 million today, which does not include the impact of the Direct Line acquisition. So it would have been from 4.7 million to 5.6 million excluding Direct Line, to just give you that number. 46% of new sales are to existing customers. So I think that to stress is really important. Just to give you the flavor here. So for a multi-product holding customer, the cost per acquisition is 32% lower. So I guess that shows just how efficient the marketing spend is there, because obviously, we know a lot about those customers, and they are always very targeted in the way that we speak to them.

Charlotte Jones: [inaudible]

Speaker #2: Okay. And then on the multi-product holdings—so, if we think about the UK, there are 22 million customers. We had 4.7 million multi-product customers in 2022.

Speaker #2: So they're 2.8 times more engaged on the myAviva app than a single product customer. I mean, I literally could go on all day because there are lots of these brilliant customer stuff.

Speaker #2: That's increased to 7.2 million today, which does include the impact of the Direct Line acquisition. So it would be from 4.7 million to 5.6 million, excluding Direct Line, just to give you that number.

Speaker #2: But if I go back to the example of the 70% of direct wealth sales coming from existing customers, just imagine and we haven't really turned that on massively yet.

Speaker #2: When we turn up the dial on that, it's all there. And there are things today like in the PCW motor racing, even if that customer doesn't say that they are a multi that they hold a pension with us, owen is able to he knows that because of our single view of customer.

Speaker #2: 46% of new sales are to existing customers, so I think that really stresses the importance. And just to give you a flavour here: for a multi-product holding customer, the cost per acquisition is 30% lower.

Speaker #2: And he's able to give a pricing benefit to that customer because we know that that customer will be more loyal. In terms of the outlook, look, I think setting an outlook is not the right thing to do because what you're not seeing in these numbers is actually the number of customers that are moving from 2 to 3 and 3 to 4, which is actually quite something.

Speaker #2: So that, I guess, shows just how efficient the marketing spend is there, because obviously we know a lot about those customers, and they're always very targeted in the way that we speak to them.

Speaker #2: We also have better retention rates. So the retention rate is about 1.7 points higher than if you're a non-multi-product-holding customer. And then they engage more.

Amanda Blanc: We also have better retention rates. So the retention rate is about 1.7 points higher than if you are a non multi-product holding customer. Then they engage more. So they are 2.8 times more engaged on the MyAviva app than a single product customer. I mean, I literally could go on all day because there are lots of these brilliant customer stuff. But if I go back to the example of the 70% of direct wealth sales coming from existing customers, just imagine, and we have not really turned that on massively yet. When we turn up the dial on that, it is all there.

Charlotte Jones: [inaudible]

Speaker #2: So the number of customers with 3-plus products has moved from 1.6 million in the half of '25 to 2.4 million in the half million of '26.

Speaker #2: So they're 2.8 times more engaged on the MyAviva app than a single-product customer. I mean, I literally could go on all day because there are lots of these brilliant customer stories.

Speaker #2: Some of that is direct line, obviously. And the customers with 3-plus more products over that same period has grown by 4% from 1.7 million to 1.6 million to 1.7 million.

Speaker #2: But if I go back to the example of the 70% of direct wealth sales are coming from existing customers—just imagine, and we haven't really turned that on massively yet.

Speaker #2: So we're definitely seeing that it's not just customers moving from 1 to 2. That's nice. It's when they start moving from 2 to 3 and 3 to 4.

Speaker #2: When we turn up the dial on that, it's all there. And there are things today, like in the PCW, motor racing—even if that customer doesn't say that they are a multi, that they hold a pension with us—are we able to know that because of our single view of customer?

Amanda Blanc: There are things today like in the PCW motor racing, even if that customer does not say that they hold a pension with us, Owen is able to know that because of our single view of customer, and he is able to give a pricing benefit to that customer because he knows that customer will be more loyal. In terms of the outlook, I think sentiment outlook is not the right thing to do, because what you are not seeing in these numbers is actually the number of customers that are moving from 2 to 3 and 3 to 4, which is actually quite something. The number of customers with 3+ products has moved from 1.6 million in H1 of 2025 to 2.4 million in the half million of 2026. Some of that is Direct Line, obviously.

Charlotte Jones: [inaudible]

Speaker #2: And this is the power of the model. And that is something which I would say we're only in the foothills of. It's so exciting.

Speaker #2: And AI opens up that opportunity even more. And I think your point was where you're going to see that coming through in the expense ratio.

Speaker #2: And he's able to give a pricing benefit to that customer because we know that that customer will be more loyal. In terms of the outlook, I think setting an outlook is not the right thing to do because what you're not seeing in these numbers is actually the number of customers that are moving from two to three and three to four, which is actually quite something.

Speaker #2: Well, I think you'll see it coming through in retention. You'll definitely see it coming through in the cost to serve. So because that acquisition cost will reduce.

Speaker #2: But I think there's the benefit here of what do we trade? What do we take into the bottom line? And what do we reinvest to be able to underwrite more business?

Speaker #2: So the number of customers with three-plus products has moved from 1.6 million in the half year of '25 to 2.4 million in the half year of '26.

Speaker #2: And I think that's those are the opportunities we've got optionality. Right? I mean, that's the benefit of the diverse model. So very excited about that.

Speaker #2: Some of that is direct line, obviously. And the customers with three or more products over that same period has grown by 4%, from 1.6 million to 1.7 million.

Amanda Blanc: The customers with 3+ more products over that same period has grown by 4% from 1.6 million to 1.7 million. So we are definitely seeing that it is not just customers moving from 1 to 2. That is nice. It is when they start moving from 2 to 3 and 3 to 4, and this is the power of the model. That is something which I would say we are only in the foothills of. It is so exciting. AI opens up that opportunity even more. I think your point was where you are going to see that coming through in the expense ratio. I think you will see it coming through in retention. You will definitely see it coming through in the cost to serve.

Speaker #2: I think I answered all the points there.

Charlotte Jones: [inaudible]

Speaker #3: James.

Speaker #2: So we're definitely seeing that it's not just customers moving from one to two—that's nice. It's when they start moving from two to three, and three to four.

Speaker #4: Thanks. James Shuck from Citi. I had three questions, please. Just on the PYD point, I understand the recycling between the risk adjustment in the sort of attritional and then the PYD.

Speaker #2: And this is the power of the model. And that is something which I would say we're only in the foothills of. It's so exciting.

Speaker #4: But sort of at a steady state level, there's kind of nothing really to see there on that kind of view. On the 11% target you have across the whole of the three years, therefore, is the kind of expectations if now we're going to be looking at 2 to 3 points of total, PYD, is that incremental or was that already in that 11% target across the three years?

Speaker #2: And AI opens up that opportunity even more. And I think your point was that you're going to see that coming through in the expense ratio.

Speaker #2: I think you'll see it coming through in retention. You'll definitely see it coming through in the cost to serve, because that acquisition cost will reduce.

Amanda Blanc: Because that acquisition cost will reduce. I think there is the benefit here of what do we trade, what do we take into the bottom line, and what do we reinvest to be able to underwrite more business? I think those are the opportunities. We have optionality, right? That is the benefit of the diverse model. So very excited about that. I think I answered all the points then. Great. Just to make sure it comes through. I have three questions, please. Just on the PYD point, I understand the recycling between risk-adjusted and the reserve restriction or the PYD is still at a steady state level. There is kind of nothing really to see there on that currently.

Speaker #2: But I think there's the benefit here of, what do we trade? What do we take into the bottom line? And what do we reinvest to be able to underwrite more business?

Speaker #4: Secondly, the walk-on the UK GI was really helpful. The underlying combined ratio, could you just repeat the same thing for Canada? As well, please.

Speaker #2: And I think those are the opportunities. We've got optionality, right? I mean, that's the benefit of the diverse model, so I'm very excited about that.

Speaker #4: And then finally, just anything you can give on very, very most recent motor pricing in the UK, very helpful. Thank you.

Speaker #2: I think I answered all the points there.

Speaker #2: OK. So the EPS development of 11% is so to the extent that the risk adjustment recycles, it's a wash. To the extent that the reserve strength is retained, it's also a wash.

[Analyst] (Credit Suisse): [inaudible]

Speaker #1: Great.

Speaker #2: This is James Hart from CC. I have three questions, please. Just on the BYD point, I understand the recycling between risk adjustment in the sort of traditional line memo.

Speaker #2: BYD has developed a steady state level, so there's really nothing to see there. On the 11% target you have across the whole three years, is the expectation that if now we're looking at two to three points in total, BYD is that incremental, or was that already here?

Speaker #2: So those two are neutral. Right? So they're not driving growth in EPS. I'm not assuming that in that cycle I'm going to do something different.

Speaker #2: That 11% target is set across the three years. Secondly, the work on the UK GI is really helpful. The initiative—you just repeated the same thing for Canada.

Speaker #2: And start releasing more reserves than I'm building. So there isn't an assumption built into the EPS development that is from PYD because those two things are a wash.

Charlotte Jones: On the 11% target you have across all of the three years, therefore, is the kind of expectations if you are now going to have to give 2 to 3 points to the typo PYD, is that incremental or was that already in the 100% target across those three years? Secondly, the walk home, the UK TR was very helpful. I do not know if you want to share, could you just repeat the same thing for Canada as well, please? Then finally, just anything you can give on very most recent rate pricing in the UK. Very helpful. Thank you. Okay. The EPS development of 11% is to the extent that the risk-adjustment recycles, it is a wash. To the extent that the reserve strength is retained, it is also a wash. So those two are neutral, right? So they are not driving growth in EPS.

Charlotte Jones: [inaudible]

Speaker #2: As well, please. And if I need just anything, you can get on. Very, very most recent in the UK. Very helpful. Thank you.

Speaker #2: There will be natural PYD. And there will be natural weather. And we have to manage that in the round in order to because there's a volatile items that I don't know how they're going to emerge.

Speaker #1: Okay.

Speaker #2: So, the EPS development of 11% is such that, to the extent that the risk adjustment recycles, it's awash. To the extent that the reserve strength is retained, it's also awash.

Speaker #2: Now, clearly, we have weather loadings. And we have large loss expectations all based on long-term averages. But to the extent that things move outside of the range, then that is something that because we've got the diversified business that we would be expected to manage.

Speaker #2: But there isn't an assumption that there is a PYD kicker to drive that 11% development because I'm intending to keep the balance sheet resilience stable and beyond that PYD could emerge in either direction.

Speaker #2: So those two are neutral, right? So they're not driving growth in EPS. I'm not assuming that in that cycle, I'm going to do something different and start releasing more reserves than I'm building.

Charlotte Jones: I'm not assuming that in that cycle I'm going to do something different and start releasing more reserves than I'm building. There isn't an assumption built into the EPS development that is from PYD because those two things are a wash. There will be natural PYD, and there will be natural weather, and we have to manage that in the round in order to because those are volatile items that I don't know how they're going to move. Clearly, we have weather load in, and we have large loss expectations all based on long-term averages. To the extent that things move outside of the range, then that is something that because we've got a diversified business, those we would expect to manage.

Charlotte Jones: [inaudible]

Speaker #2: What would trying to get across is just that you can structurally allow for the PYD because it is there. And it's offsetting in current.

Speaker #2: So, there isn't an assumption built into the EPS development that is from BYD, because those two things are awash. There will be natural PYD and there will be natural weather, and we have to manage that in the round, because those are volatile items and I don't know how they're going to emerge.

Speaker #2: And when you kind of go through one lens or the other, you need to keep in mind the natural offset that appears in the other lens.

Speaker #2: What was the second question?

Speaker #4: It was about the walk-on GI seat call for Canada.

Speaker #2: OK. Should I do the motor pricing? So I think I said I answered Andrew's question just around we are I think it was yeah, it was Andrew.

Speaker #2: Clearly, we have weather loadings, and we have large loss expectations, all based on long-term averages. But to the extent that things move outside of the range, then that is something that, because we've got a diversified business, we would be expected to manage.

Speaker #2: A 6% we are rating 6% up on motor today and 3%. I think you were asking what's the most recent data. So look, I think we don't have the actual poundage for the market.

Speaker #2: But there isn't an assumption that there is a PYD kicker to drive that 11% development, because I'm intending to keep the balance sheet resilient.

Charlotte Jones: There isn't an assumption that there is a PYD kicker to drive that 11% development, because I'm intending to keep the balance sheet resilience stable, and beyond that, PYD could emerge in either direction. What we've tried to get across is just that you can structurally allow for the PYD because it is there, and it's offsetting in current. When you kind of go through one lens or the other, you need to keep in mind the natural offset that appears in the other lens. What was the second question? It was about the walk home GNAC call for Canada. Should I do the motor prior to doing the answer? I think I answered Andrew's question just around we are at, I think it was. Yeah, it was Andrew. At 6%, we are waiting 6% up on motors today and 3%.

Charlotte Jones: [inaudible]

Speaker #2: We know that we're continuing to be disciplined. But I think what you've seen is that the ONS and the ABI data is showing that the market is steadily walking up.

Speaker #2: Stable, and beyond that, PYD could emerge in either direction. What we're trying to get across is just that you can structurally allow for the PYD because it is there and it's offsetting in current.

Speaker #2: And I think you've heard others say that in their results. And we are clearly using our data advantage, our approved repairing metric advantage, and the fact that we have got a very strong technical strength to be able to trade our way through that.

Speaker #2: So hopefully, that answers that. But I don't have any more absolute actual data than that, James.

Speaker #2: And when you kind of go through one lens or the other, you need to keep in mind the natural offset that appears in the other lens.

Speaker #4: Yeah. So in Canada, the it's 2.6 points underlying worth this time than last time. I'm sure that's the same numbers you've got. The large losses, though, are a good portion of that.

Speaker #2: What was the second question? It was about the war on GIC call for Canada. Okay. Should I give as much priority to the answer?

Speaker #2: So I think I answered this question just around where we are. I think it was—yeah, it was Andrew at 6%. We are waiting 6% up on motor today and 3%.

Speaker #4: So the reserving movement's relatively neutral. The but the large losses are bigger. Quite considerably than they were this time last year. And then below that, there'll be a little bit of that margin movement.

Speaker #2: I think you were asking what's the most recent data. So, look, I think we don't have the actual panels for the market. We know that we're continuing to be disciplined.

Charlotte Jones: I think you were asking what's the most recent data. Look, I think we don't have the actual premise for the market. We know that we're continuing to be disciplined. I think what you've seen is that the ONS and the ABI data is showing that the market is steadily walking up. I think you heard us say that in the results. We are clearly using our data advantage, our improved repair network advantage, and the fact that we've got a very strong technical strength to be able to trade our way through that. Hopefully that answers that. I don't have any more sort of actual data than that, James. In Canada, certainly there's 2.6 points underlying worse this time than the last time. What's signaling that you've got the large losses that are a good portion of that.

Charlotte Jones: [inaudible]

Speaker #4: But it's relatively minor.

Speaker #2: But I think what you've seen is that the ONS and the ABI data are showing that the market is steadily walking up. And I think you hear others say that in their results.

Speaker #3: Looks like that's it.

Speaker #2: We've exhausted you. I think it was I think it was my answer on rate the digit. I'm definitely going to.

Speaker #4: That's never been known. Literally, everybody's heads have been spinning. Hopefully, you did get everything you needed there. So look, thank you very, very much.

Speaker #2: And we are clearly using our data advantage, our proof-of-curve network advantage, and the fact that we have a very strong technical strength to be able to trade our way through that.

Speaker #4: For coming in on a Friday morning. If air conditioned, that's got to be a good thing. We really, really appreciate that. And obviously, follow up with any other questions to the with the IRK Morris Charlotte tonight.

Speaker #2: So hopefully, that answers that. But I don't have any more, sort of, actual data in that case. Yeah. So, in Canada, the 2.6 points underlying worse this time than last time sort of signal what you've got.

Speaker #4: Thank you very much.

Speaker #2: The large losses there were a good portion of that, so the reserve movement's relatively neutral. The large losses are bigger—quite considerably—than they were this time last year.

Amanda Blanc: The reserve movement is relatively neutral. The large losses are bigger quite considerably than they were this time last year. Then below that, there'll be a little bit of that margin movement, but it's relatively minor. The results to June. I think it was my answer on the April to June. I'm definitely. That's better than no response. Basically everybody's had a good feeling. Hopefully you did get everything you needed there. Look, thank you very much for coming in on a flight this morning. You sound conditioned. That's got to be a good thing. We really appreciate that and obviously follow up with any other questions with the IR team or the comms team. Thank you very much. Thank you.

Amanda Blanc: [inaudible]

Speaker #2: And then below that, there will be a little bit of that margin movement, but it's relatively minor. I think that was my answer on 8.

Speaker #2: I'm definitely never going to know that. I'm just literally going to be—hopefully you did get everything you needed there. So, look, thank you very, very much for coming in on a Friday morning.

Speaker #2: Is there a condition? That's got to be a good thing. We really, really appreciate that. And obviously, follow up with any other questions to the IR team, who will be challenged tonight.

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