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Insurance giant Aviva has said its profits surged by a fifth over the first half of 2025, sending its share price to the highest level since before the 2008 financial crisis.

The latest results come as it said its tie-up with rival Direct Line was “well under way”.

The company reported an operating profit of £1.1 billion for the first six months of 2025.

This was an increase of 22% compared with the same period a year ago.

Aviva said it was driven primarily by growth in its UK and Ireland general insurance business and wealth and retirement.

General insurance premiums – how much a customer pays for an insurance policy – leapt by 9% year-on-year to total £4.1 billion across the region.

Profits for the division soared by 50% thanks to strong underwriting activity and improved returns of investment in the UK.

But this was partly offset by the impact of Storm Eowyn in Ireland, where record-breaking winds cut electricity supplies to hundreds of thousands of homes, schools and businesses.

Aviva’s share price jumped by about 4% on Thursday to hit the highest level since late 2007, before the global financial crisis.

Aviva completed its £3.7 billion takeover of Direct Line last month.

Aviva said that merging the two companies was now “well under way” adding that it was “moving at speed to improve performance, drive financial benefits and unlock the full potential of the combined business”.

Chief executive Amanda Blanc said: “The combined business is a UK market leader with over 21 million customers, or four in 10 adults, and we are confident the deal will contribute significantly to Aviva’s future growth.”

Richard Hunter, head of markets at interactive investor, said the takeover will “further cement Aviva’s leading positions particularly in the home and car insurance markets”.

He said: “While car insurance has seen a substantial increase in premiums to the exasperation of many consumers, the space has been affected by both higher average new car prices as well as the costly nature of repairing increasingly complex and technologically advanced vehicles.”

Meanwhile Admiral, which sells car, home, travel and pet insurance, also said that its pre-tax profit soared by 69% over the first half of 2025, compared to 2024.

This was driven by its UK insurance division winning more sales and customers for motor policies.