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Aviva profits surge 24% after Direct Line acquisition

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Aviva offers home, car, and life insurance in the UK and serves 25m customers

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Aviva has offices across the UK(Image: Philip Toscano/PA Wire)

FTSE 100 insurance group Aviva has announced a 24 per cent rise in operating profit for the first half of this year, bolstered by the group’s “strong progress” following its takeover of Direct Line in 2025.

The London-listed insurer, which provides home, motor, and life insurance across the UK and serves around 25 million customers, revealed its overall operating profit climbed to £1.3bn for the period ended 30 June 2026, up from £1.7bn the previous year, driven by its £3.6bn acquisition of Direct Line in July 2025.

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Aviva’s general insurance premiums rose 29 per cent to £8.1bn, with UK and Ireland premiums surging 42 per cent to £5.9bn.

The insurer’s wealth management division also expanded 32 per cent to £7.6bn, underpinned by a new pension scheme and robust sales through its investment platform.

“We are making very good progress with the integration of Direct Line. We have quickly improved Direct Line’s profitability, grown price comparison website sales, and maintained excellent levels of customer service. We are well on track to deliver all the financial benefits of the acquisition,” chief executive Amanda Blanc said, as reported by City AM.

Blanc said the insurer is “confident that we will meet our three-year financial targets in 2028 and expect 75 per cent of our earnings to be capital-light by that point.”

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Richard Hunter, head of markets at Interactive Investor, said the results “further cements Aviva’s leading positions particularly in the home and car insurance markets.

“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 (equating to higher insured valuations) as well as the costly nature of repairing increasingly complex and technologically advanced vehicles,” Hunter said.

The insurance giant is also driving forward with technology adoption as it continues to deploy AI throughout the organisation.

Aviva is utilising its customer base data to train its AI systems, which it described as “major competitive advantages which will drive our future growth.”

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The company said it is “already delivering tangible benefits” from implementing AI within its medical underwriting division. Aviva has also recently introduced a generative AI tool to analyse and summarise extensive medical reports and extract pertinent information.

The insurer is additionally planning to introduce an AI virtual assistant later this year, along with the deployment of AI-powered claims agents to assist customers.

Aviva has offices across the UK including in Birmingham, Bristol, Leeds, Liverpool, Manchester, Sheffield and York.

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Engine parts smashed Ryanair window that man’s head was sucked out of, report says

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Broken engine fragments smashed a cabin window of a Ryanair plane causing a man’s head and right shoulder to be sucked into the hole last month, US investigators have said.

The National Transportation Safety Board (NTSB) wrote in a preliminary report that this happened after an engine fan blade broke shortly after takeoff on the 10 July flight from Greece to Germany.

Serbian national Ljubisa Karović’s head and right shoulder were sucked out of the plane’s window, leaving him “seriously injured and in shock”.

His wife Svetlana Grković Maksimović later told BBC Serbia that she and two other passengers held onto his legs for several minutes.

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The NTSB said the flight from Thessaloniki to Memmingen “experienced a No. 2 (right) engine fan-blade-out (FBO) failure during climb out”.

“The crew elected to return to SKG [Thessaloniki International Airport] where they made an uneventful landing.”

The NTSB was “delegated the investigation in full” by the Greek authorities in the days following the incident.

It also detailed a timeline of events given by the flight crew, who said they received a “high vibration” engine alert during the climb.

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In response, they reduced the engine power and carried out a series of checks. When the vibrations stopped, the crew continued to climb on autopilot, the report said.

But the engine vibrations then increased and the crew heard a loud bang, prompting them to declare an emergency and begin their descent.

Flight attendants reported hearing and feeling the vibrations, and seeing a small amount of smoke before the oxygen masks were deployed.

One flight attendant said they then noticed passengers calling for help after a passenger became “partially lodged in a damaged cabin window”, with the entire window missing.

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The engine had undergone ultrasonic inspections in May this year with no findings of fault, the report stated.

Ryanair boss Michael O’Leary earlier suggested that the incident may have been caused by “foreign object damage” to an engine.

The aircraft was operated by Ryanair’s subsidiary Malta Air.

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Terry de Havilland US expansion: Macy’s, Nordstrom deals

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Terry de Havilland US expansion: Macy's, Nordstrom deals

British footwear brand Terry de Havilland is planning a US retail launch with Macy’s, Bloomingdale’s and Nordstrom later this year, according to Darren Spurling, who owns the business.

Spurling, 60, is the nephew of the late designer Terry de Havilland and runs the Newcastle-based company with his son Josh. The business has ten employees, designs in Britain and manufactures its shoes in Spain.

The move follows a rise in US online sales after recent sightings of actresses including Millie Bobby Brown and Margot Robbie wearing the brand’s shoes.

The label was founded by Terrence Higgins, who began designing shoes in 1972 and opened his King’s Road shop, Cobblers to the World, the same year. He took his trading name from a Paris phone book. “He didn’t think Higgins was a very good name for shoes,” Spurling said, “it didn’t seem exotic.”

The brand’s platform heels were worn in the 1970s by David Bowie and by customers Spurling listed as “Lulu, Cher, The Rolling Stones, Elton John”. Its Margaux wedge, named after Margaux Hemingway, has been in the collection since 1973, and the Deco heel, a five-inch sandal with metallic snakeskin trim, has been displayed at the V&A. The museum’s collection also includes a pair of his 1972 snakeskin platform shoes, given by the milliner David Shilling.

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By the late 1990s the designer had moved away from the mainstream and was making bespoke shoes for customers in Camden Market. He returned to wider attention after Miu Miu, the label owned by Prada, produced shoes Spurling described as “literally exact copies, same materials, same designs”.

De Havilland pursued Prada through the courts over trademark infringement, arguing that his products were classed as art. The case did not progress far, but the publicity helped him secure licensing deals in America and Britain. Under Intellectual Property Office rules, a UK registered design must be renewed every five years and lasts a maximum of 25 years.

Spurling, who had previously sold his family’s chain of London sports shops to Blacks Leisure Group and served as managing director of surfwear brand O’Neill’s, reconnected with his uncle at a family party and began advising him on the licensing arrangements. “I helped him to buy out the licensing so that he could get the brand back, which we did in 2010,” he said. Spurling bought the company outright in 2015, when the designer was nearly 80. De Havilland died in 2019.

The pandemic followed. “In all honesty, we thought we were buggered,” Spurling said, given that the company specialised in occasion shoes. The business moved to a direct to consumer model and, in 2022, went “from nothing to doing over a million pounds” online. Spurling said that boom has since ended as consumers have become “more considered” and “more conscious” about what they buy.

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He said he keeps the team small and outsources where possible because “the cost of hiring is an issue … the best way [is] to be adaptable”. The company has reintroduced 1970s designs and added matching bags and trainers, while remaining “very much focused on quality, on craftsmanship, on being slow fashion”.

Other British brands have moved in both directions on the US market. Wine merchant Berry Bros. & Rudd is opening its first US store in Washington, while athleisure label Tala suspended a planned £5 million US investment after a change in American tariff policy.

Spurling said the brand’s history gives it “real strong credibility”, adding: “what we need to do is make it as relevant as possible … and that’s a challenge.”


Amy Ingham

Amy Ingham

Amy Ingham is a reporter at Business Matters, covering UK business news with a focus on breaking news, business policy, late payments and insolvency. She joined the magazine in 2026 after completing the NCTJ Diploma in Journalism at Harlow College’s journalism school. Her recent reporting includes British Steel’s nationalisation and its impact on SME suppliers, the decline in late payments by large firms, and Insolvency Service director disqualifications. Reach her at aingham@cbmeg.co.uk.

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Selena Gomez sued for alleged fraud over mental health company

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Hollywood actress and singer Selena Gomez is being sued by five investors who backed Wondermind Global, a mental health business she founded with her mother.

Shareholders are claiming the pop star failed to fulfil promises that she would be “actively building” the brand, saying her “abject dereliction of her duties” has left the company in a “state of financial calamity”.

The lawsuit seeks to recover around $1.2m (£890,000) it claims was invested as well as costs and damages.

The BBC has contacted Wondermind and Gomez’s representatives for comment.

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Gomez, who rose to fame as a child actor before moving into pop music, set up the mental health platform five years ago with her mother Mandy Teefey and businesswoman Daniella Pierson. It came after Gomez publicly discussed her own mental health struggles, including with bipolar disorder.

The 34-year-old is one of the most-followed women in the world on social media, with over 500 million followers, and an estimated net worth of nearly $1bn. She also founded cosmetics company Rare Beauty, in 2020, which is closely associated with her name and image.

Wondermind aimed to make mental health-related content more accessible through a digital platform, recruiting investors to back the venture.

But the lawsuit claims Wondermind’s founders “falsely represented” their position by suggesting “a full slate” of ad deals, celebrity cover stories, an app and other initiatives were already underway and promising that Gomez would take an active role as its head of marketing.

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“Gomez purported ‌to ⁠sign a contract obligating her to perform and then ignored it,” the lawsuit claims.

Gomez is currently listed as a co-founder on Wonderminds website, below her mother who is now in the chief executive role, following Pierson’s departure from the company.

The individuals behind the suit, based in New York and Florida, include Brent Saunders, chief executive of eye-health company Bausch + Lomb.

The claimants’ lawsuit alleges Wondermind failed to meet “even its most basic obligations, such as timely paying its employees and vendors”.

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Promises including Wondermind’s partnerships and app never materialised, according to the claim.

“For three years, while the company quietly collapsed around them, not one of its founders, officers, or directors said a word to the investors whose money was funding the collapse,” the complaint states.

They said they were unaware of the company’s difficulties until an investigative news story by the online magazine, The Cut, surfaced in September 2025.

That report made allegations about Wondermind’s finances and issues with its management, according to the lawsuit.

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The article showed that “Wondermind had no plan for its future – much less a plan for achieving a multi-billion dollar valuation,” the lawsuit claims.

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Lowe’s Companies, Inc. (LOW) Q1 2026 Earnings Call Transcript

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript