London, Jan 25, 2026, 08:41 GMT — Market closed
Aviva shares fell 5.17% to 619.40 pence on Friday, marking a sharp drop late in the week before the London market reopens Monday. Trading volume reached roughly 18.4 million shares, according to data. 1
The latest drop pushed Aviva even further from its 52-week high of 7.01 pounds reached on Jan. 6, putting it roughly 11.6% below that peak, per MarketWatch data. 2
The selloff came as investors absorbed a batch of UK economic data that boosted the pound and shifted interest-rate bets—an unsettling combo for insurers. The FTSE 100 slipped 0.1% on Friday. Admiral took a sharp hit following broker downgrades earlier in the week. Deutsche Bank’s chief UK economist Sanjay Raja called the data “encouraging signs,” while JPMorgan’s Allen Monks warned against reading too much into just one month of surveys. 3
UK government bond yields caught attention. The 10-year gilt yield climbed to roughly 4.5%, marking a two-week peak. Traders pulled back on expectations for Bank of England rate cuts, influenced by stronger economic data and remarks from policymaker Megan Greene, according to TradingView. 4
Sterling posted its strongest week versus the dollar since August, buoyed by an unexpected uptick in December retail sales and a January surge in the S&P Global composite purchasing managers’ index — a key gauge of business activity — Reuters reported. Despite the data, markets largely expect the Bank of England to keep rates steady in February, with a quarter-point cut priced in by June. 5
Aviva announced it will expand DigiCare+ benefits on its individual protection policies, dropping the previous limit of three GP appointments per year. Now, policyholders and their families get unlimited 24/7 digital GP access. These changes kick in on Jan. 29. “This reflects our commitment” to accessible healthcare, said Fran Bruce, Aviva’s managing director of protection. 6
Aviva Investors, the asset-management division, has boosted its UK wealth team with new hires. Eoin Rooney steps in as director of digital channels, while Serena Burton takes on the role of strategic partners director. Smera Ashraf, head of EMEA wealth, told Funds Europe these moves show the firm’s ongoing “commitment to the UK Wealth channel.” 7
Investors are closely tracking how fast Aviva can turn its Direct Line deal into capital and earnings. The company revealed earlier this month that the Prudential Regulation Authority has signed off on revoking Direct Line’s Solvency II partial internal model — Solvency II being the UK’s insurance capital framework. Aviva said this move could boost its 2025 group shareholder solvency ratio by roughly 2 percentage points and unlock over £0.5 billion in capital synergies by the end of 2026. 8
The rate story could turn. If growth worries resurface and yields drop, insurers might lose crucial market backing. Plus, any slip in cost savings or integration efforts would hand short-sellers fresh ammo.
The London Stock Exchange kicks off again at 0800 GMT Monday, while global rates markets brace for another shakeup with the U.S. Federal Reserve meeting set for Jan. 27-28. 9
Aviva is set to release its full-year results on March 5. Investors will focus on capital generation, shareholder returns, and the timeline for integrating Direct Line. 10
