The boss of insurer Aviva has cautioned that a prolonged conflict in the Middle East could send the cost of vehicle parts and repairs surging, echoing the inflationary pressures seen after Russia’s invasion of Ukraine.
Chief executive Amanda Blanc said the group has seen limited claims so far relating to the US-Israel war with Iran, but flagged the potential for claims costs to jump if supply chains are badly disrupted for a long time. “We have a good case study on this in terms of the Ukraine situation back in 2022 and the impact on the supply chain, which had an inflationary impact on vehicle parts and replacement vehicles,” she said. “Obviously, if this goes on for a prolonged period of time, we would expect that this could have some impact, but to speak about this from an Aviva perspective, we are very well placed to manage that with our supply chain and our owned garage network.”
Ms Blanc added that the insurer would take action as necessary to look after customers and price for any new inflationary impact. She noted that travel claims have been “very limited” so far, but said customers have called to ask about whether they should travel, with Aviva pointing them to Foreign Office guidance.
The comments came as Aviva reported full-year results showing annual earnings leapt 25% higher, while resuming share buybacks after its £3.7 billion takeover of Direct Line. The group posted earnings of £2.2 billion for 2025, up from £1.8 billion in 2024, including a £174 million contribution from Direct Line, helping it hit financial targets a year early. Aviva also unveiled a £350 million share buyback.
Ms Blanc said the company has been transformed over the last five years, with significant progress made. She also highlighted artificial intelligence as a major focus, saying Aviva has “clear strengths” in AI that are creating opportunities to transform claims, underwriting and customer experience.
