Aviva Price Target Increased by BofA Following Direct Line Insurance Takeover

BofA has increased Aviva's price target after the company's takeover of Direct Line Insurance. Aviva is a UK-based insurance, wealth, and retirement business company with segments including UK & Ireland Insurance, General Insurance, and Aviva Investors. The takeover will likely boost Aviva's revenue and profitability.

Bank of America (BofA) has increased its price target for Aviva plc following the UK-based insurance giant's acquisition of Direct Line Insurance. The new price target reflects BofA's optimism about the potential revenue and profitability boost that the merger will bring to Aviva.

Aviva reported a 22% jump in its first-half operating profit, reaching £1.07 billion, driven primarily by growth in its UK and Ireland general insurance business and wealth and retirement segments [1]. The company's share price has surged, hitting its highest level since before the 2008 financial crisis, as it continues to integrate Direct Line into its operations [2].

The acquisition of Direct Line, completed in July, is expected to significantly contribute to Aviva's future growth, according to CEO Amanda Blanc. BofA's analysts have taken note of this potential, increasing their price target for Aviva [3].

Aviva's UK & Ireland Insurance segment saw a 9% year-on-year increase in premiums, while its General Insurance division's profits surged by 50% due to strong underwriting activity and improved investment returns [2]. However, the impact of Storm Eowyn in Ireland, which caused record-breaking winds and power outages, partially offset these gains.

The merger is well underway, with Aviva confident that it will unlock the full potential of the combined business. BofA's analysts are optimistic about the strategic fit and the potential cost synergies from the acquisition [3].

References:
[1] https://dailybusinessgroup.co.uk/2025/08/aviva-confident-in-direct-line-and-raises-dividend/
[2] https://finance.yahoo.com/news/aviva-share-price-highest-since-122701865.html
[3] https://www.marketscreener.com/news/mesh-d-limited-announced-that-it-has-received-funding-from-haatch-ventures-llp-aviva-plc-and-other-ce7c51dfd18cf725