Aviva CEO Amanda Blanc Calls for Political Stability to Support UK Businesses
Impact of Political Instability on UK Businesses and Aviva's Performance
By Iain Withers and Yamini Kalia
Political Turmoil and Its Effects on Business
LONDON, May 14 (Reuters) - Aviva CEO Amanda Blanc said on Thursday that businesses were being harmed by political turmoil in Britain, as Prime Minister Keir Starmer faces a potential leadership challenge.
Leadership Changes and Economic Perception
"There have been too many changes of government strategy, leadership, just in my six years of being CEO, and I think that is harmful to a major economy such as the UK and how we are perceived abroad," Blanc told Reuters.
"We don't operate in a vacuum, and we think it's very important that we get some stability," Blanc added in an interview after Aviva reported a 19% rise in first-quarter general insurance premiums to 3.4 billion pounds ($4.6 billion).
Government Policy and Market Reactions
Blanc said many of the Labour government's policies, including on pensions reform, had been well received by companies, but uncertainty had consequences, citing the markets crisis during the short-lived premiership of former Conservative leader Liz Truss.
"We've only got to look at the market reaction to (Truss') mini-budget, to gilts - these are the sort of things that really matter," Blanc added.
Aviva's Strategic Moves and Financial Performance
Direct Line Acquisition
DIRECT LINE BOOSTS NUMBERS
Aviva completed Blanc's biggest deal yet with its 3.7 billion pound takeover of motor insurer Direct Line, helping the FTSE 100 insurer weather market volatility as sales through price comparison sites nearly doubled since the start of 2026.
Retirement Business and Share Performance
However, analysts at RBC noted weaker than expected margins in its retirement business. Aviva shares traded broadly flat.
Growth in Insurance and Wealth Flows
Insurance Offerings and Market Presence
Aviva, which offers car, home and life insurance in Britain, Ireland and Canada, said its wealth net flows surged 49% to 3.3 billion pounds in the quarter.
Workplace Pensions and Adviser Units
Blanc said flows had been boosted by its workplace pensions and adviser units, with flows also performing well after the quarterly period ended.
($1 = 0.7398 pounds)
(Reporting by Iain Withers in London and Yamini Kalia in Bengaluru; Editing by Mrigank Dhaniwala and Alexander Smith)
