Aviva (AV.)

Sector:

Insurance

Index:

FTSE 100

273.50p
   
  • Change Today:
    -5.20p
  • 52 Week High: 438.40
  • 52 Week Low: 211.00
  • Currency: UK Pounds
  • Shares Issued: 3,927.67m
  • Volume: 6,536,758
  • Market Cap: £10,742m
  • RiskGrade: 254

Aviva sees £160m payout from Covid claims, warns on downturn impact

By Frank Prenesti

Date: Thursday 21 May 2020

LONDON (ShareCast) - (Sharecast News) - Aviva on Thursday said it expected to pay a net £160m of claims related to the coronavirus shutdown with the majority of payments in business interruption, travel insurance and commercial lines.
The UK's biggest insurer said the crisis posed challenges to meeting its 2022 targets, warning that second quarter sales had already been hit as it warned about the impact from a severe economic downturn.

First quarter new business sales rose 28% to £12.3bn boosted by strong bulk annuity sales while general insurance net written premiums were up 3% to £2.4bn.

Aviva said second quarter new business sales had fallen across many of its businesses due to worldwide lockdowns with sales volumes for the year overall "likely to remain below expectations".

"In addition to the estimated general insurance claims impact from Covid-19, financial market performance and economic activity are also likely to impact revenues in our savings and asset management businesses, which are sensitive to asset values," the company said.

It added that it expected £200m in net business interruption claims, warning that the "vast majority of our commercial policies do not cover business interruption claims arising from Covid-19.

"However, we anticipate potential areas of exposure in certain specialist schemes and broker programmes, and we have paid claims in the UK and Canada where coverage exists."

Aviva and fellow insurer QBE face possible legal action from the Hospitality Insurance Group Action (HIGA) over disputed coronavirus-related claims, while sector peers are also under fire from policyholders over interpretation of policy wordings.

HIGA was formed by business owners who believe their policies should payout after the government forced them shutter as part of the lock down. Insurers have said policies do not cover pandemics.

The action group said lawyers at Mishcon de Reya had reviewed 500 business interruption policies to determine if there are grounds to bring a claim and narrowed it down to Aviva and QBE​, adding that the law firm believed there were grounds to bring legal action at the High Court.

Sector peer Hiscox is also under fire from around 400 businesses which have formed an action group over its denial of Covid-19 claims, while Allianz and RSA face separate challenges.

Britain's Financial Conduct Authority said recently it planned to launch a test case in the High Court in an effort to provide some clarity for insurers and their customers.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Aviva Market Data

Currency UK Pounds
Share Price 273.50p
Change Today -5.20p
% Change -1.87 %
52 Week High 438.40
52 Week Low 211.00
Volume 6,536,758
Shares Issued 3,927.67m
Market Cap £10,742m
RiskGrade 254

Aviva Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
95.47% above the market average95.47% above the market average95.47% above the market average95.47% above the market average95.47% above the market average
50.00% above the sector average50.00% above the sector average50.00% above the sector average50.00% above the sector average50.00% above the sector average
Price Trend
59.46% below the market average59.46% below the market average59.46% below the market average59.46% below the market average59.46% below the market average
77.78% below the sector average77.78% below the sector average77.78% below the sector average77.78% below the sector average77.78% below the sector average
Income
97.57% above the market average97.57% above the market average97.57% above the market average97.57% above the market average97.57% above the market average
50.00% above the sector average50.00% above the sector average50.00% above the sector average50.00% above the sector average50.00% above the sector average
Growth
85.63% above the market average85.63% above the market average85.63% above the market average85.63% above the market average85.63% above the market average
75.00% above the sector average75.00% above the sector average75.00% above the sector average75.00% above the sector average75.00% above the sector average

Aviva Dividends

  Latest Previous
  Interim Final
Ex-Div 15-Aug-19 11-Apr-19
Paid 26-Sep-19 30-May-19
Amount 9.50p 20.75p

Trades for 03-Jul-2020

Time Volume / Share Price
16:35 2,460,544 @ 273.50p
16:29 7,331 @ 271.34p
16:29 248 @ 271.20p
16:29 697 @ 271.20p
16:29 5 @ 271.30p

Aviva Key Personnel

CEO Maurice Tulloch
CFO Jason Windsor

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