Aviva Secures UK Regulator's Clearance to Cancel Direct Line's Partial Internal Solvency Model

12:18 PM EST, 01/05/2026 (MT Newswires) -- The UK's Prudential Regulation Authority approved Aviva's (AV.L) request to revoke its Direct Line unit's Solvency II partial internal model for UK Insurance Ltd. and Churchill Insurance Co. The British insurer said Monday the Solvency II standard formula can be used to calculate Direct Line's solo entity capital requirements starting Dec. 31, 2025, and that it can now include the unit in its group solvency capital requirement. The new capital treatment allows both companies to recognize partial diversification benefits, and is expected to realize 100 million pounds sterling of capital synergies for Aviva in 2025.