Aviva PLC

As long-term government bonds decline, major global asset managers such as BlackRock and Aviva Investors are shifting funds into short-term debt. James Turner, head of global bonds for the EMEA region at BlackRock, is moving investments into shorter-duration bonds and inflation-linked bonds, while Aviva Investors, Aegon Asset Management, and Allspring Global Investments are favoring short-term credit products including asset-backed securities and private debt. According to Morningstar data, the median effective duration of bonds held by UK multi-asset funds stood at 5.33 years at the end of June, down from 5.55 years at the end of December. A Bloomberg index tracking bonds with maturities of one to three years has risen 1% this year, while bonds with maturities of more than ten years have fallen 4%, and the 30-year US Treasury yield is well above 5%, its highest level since the financial crisis.

Aviva reported a 49% decline in profit to £418m for the first half of 2026, while basic earnings per share fell 44% to 12.2p. Operating profit increased 24% to £1.32bn, which the insurer attributed to continued progress on its Direct Line integration and growth across core business lines. General Insurance premiums rose 29% to £8.09bn, with the undiscounted combined operating ratio improving to 93.3% from 94.6% a year earlier. Wealth net flows increased 32% to £7.6bn, and assets under management in Wealth climbed 25% to £261bn. Aviva said it had achieved £100m in run-rate cost synergies from the Direct Line integration against a target of £225m, and it increased the interim dividend by 7% to 14p per share.

Walker & Dunlop has arranged a $191 million refinancing for Project Dutch Lion, a portfolio of 19 office assets across eight municipalities in the Netherlands. The financing was secured on behalf of Time Equities from Aviva Investors, closing at 55% loan-to-value and consisting of a $134.5 million refinancing and a $57 million accordion facility for future acquisitions. The portfolio spans approximately 1.5 million square feet with around 90% occupancy and over 65 tenants, and all assets hold Dutch energy ratings of A or higher. The transaction replaces existing debt and provides additional flexibility for Time Equities' long-term strategy, with Aviva selected for its competitive terms and certainty of execution.

Aviva Canada announced $300,000 in funding for the First Nations' Emergency Services Society of British Columbia to launch a structural fire-hardening pilot program aimed at reducing wildfire risk in First Nations communities, starting with the Ashcroft Indian Band. The program supports communities that have completed FireSmart assessments but need help implementing mitigation actions, focusing on strengthening buildings against ember ignition, which causes up to 90 percent of wildfire-related structural losses. Aviva Canada has seen a 1,900 percent increase in customer wildfire claims compared to the previous five-year period. The initiative also includes Wildfire Mitigation Specialist training and prioritizes residential properties, with potential extension to critical infrastructure. The announcement coincides with FNESS's 40th anniversary of delivering emergency management services alongside First Nations communities.