Aviva boss lands £7.2m pay package as results beat forecasts

Insurer Aviva has revealed its boss landed a £7.2 million pay package in 2024 as the group notched up better-than-expected earnings ahead of its milestone £3.7 billion takeover of Direct Line.

Its annual report showed that chief executive Dame Amanda Blanc landed a £2.2 million annual bonus and £3.7 million in long-term share awards.

Her total pay package was slightly lower than the £7.3 million she picked up in 2023.

Dame Amanda could also earn a potential maximum total pay and bonuses worth £10.4 million in 2025, based on a significant share price rise, according to the report.

She will see her basic annual salary rise by 10% in 2025, against a 4.2% rise for the wider workforce.

In the annual report, Aviva said: “We are very mindful of the need to ensure Amanda’s salary remains competitive, from a UK and European perspective, recognising both are competitors for our top talent.

“The Committee also considered that Amanda’s percentage salary increases since appointment have been consistently below that of our wider workforce.”

The pay details came alongside annual results showing a 20% jump in operating profit to a better-than-forecast £1.77 billion in 2024.

Dame Amanda said the group was “on track” with its takeover of Direct Line, which will create a significant force in the motor insurance sector, estimated to cover more than a fifth of the total UK market.

The deal is set to complete in mid-2025.

Dame Amanda said the group was in “great shape” after an “excellent year, right across Aviva”.

She said: “The proposed acquisition of Direct Line is on track and is a clear opportunity to accelerate our capital-light growth, deliver brilliant service to millions more customers, and support the wider development of the UK economy.”

She added: “There is so much untapped potential for Aviva to go after and I have real confidence in our ability to unlock this.”

But the group said at the end of last year that around 2,300 jobs would be at risk after the Direct Line deal amid cost-cutting following the takeover.

Shares in the firm lifted 3% after the results, which showed UK and Ireland general insurance premiums rising by 16% to £7.7 billion as the group continued to hike prices for policyholders.

On the outlook for prices in 2025, the group said: “In general insurance we remain focused on pricing appropriately to maintain the strong rate adequacy of the book.”