Aviva (AV.)

Sector:

Insurance

Index:

FTSE 100

385.30p
   
  • Change Today:
    -5.00p
  • 52 Week High: 423.30
  • 52 Week Low: 256.50
  • Currency: UK Pounds
  • Shares Issued: 3,929.57m
  • Volume: 2,607,661
  • Market Cap: £15,141m
  • RiskGrade: 140

Aviva Q1 life premiums flat; pledges cash returns to shareholders

By Frank Prenesti

Date: Thursday 27 May 2021

LONDON (ShareCast) - (Sharecast News) - UK insurer Aviva said new life business premiums were flat year on year in the first quarter with growth in savings & retirement as it pledged to return cash to shareholders from asset sales.


New business premiums came in at £8.3bn with growth in savings & retirement and lower volumes of annuities & equity release in a subdued market compared to a strong start in 2020, the company said on Thursday.

General Insurance gross written premiums were up 4% to £2.0bn, reflecting strong new business wins and a favourable rate environment in commercial lines as well as a boost from Aviva's move to start selling products via price comparison websites.

A record of new money went into savings and retirement products during the quarter, with total flows up more than 25% to £1.5bn and £1.4 billion respectively to its workplace and IFA platforms. Net flows in savings and retirement increased by more than 31%.

Aviva's combined operating ratio (COR), which measures underwriting profitability where a level below 100% indicates a profit, strengthened to 90.6% compared with 118.7% a year ago, due to better underwriting performance, benign weather, a reduction in Covid-19 related claims and fewer claims from motorists who drove less during lockdowns.

"While the significant decline in motor rates seen over the last 12 months combined with increasing claims frequency as lockdown restrictions are lifted will have an impact on COR going forward we still expect our full year COR to be below 95%," the company said.

Aviva has sold eight businesses totalling £7.5bn in the past year to focus on its key markets of Britain, Ireland and Canada. It added that there would be a "substantial" return to shareholders with details to be released later in the year.

Richard Hunter, head of markets at interactive investor, said: "As the group has continued to pursue its defined strategy, the shares have had a strong run, having risen 61% over the last year, as compared to a hike of 14% for the wider FTSE100."

"There remains work to be done, however, as exemplified by the share price performance over the last three years, which remains down by 25%. Even so, progress is evident and the market consensus of the shares as a strong buy is reflective of strong confidence in Aviva's prospects."

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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 385.30p
Change Today -5.00p
% Change -1.28 %
52 Week High 423.30
52 Week Low 256.50
Volume 2,607,661
Shares Issued 3,929.57m
Market Cap £15,141m
RiskGrade 140

Aviva Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
99.37% above the market average99.37% above the market average99.37% above the market average99.37% above the market average99.37% above the market average
42.86% above the sector average42.86% above the sector average42.86% above the sector average42.86% above the sector average42.86% above the sector average
Price Trend
7.98% above the market average7.98% above the market average7.98% above the market average7.98% above the market average7.98% 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
Income
98.39% above the market average98.39% above the market average98.39% above the market average98.39% above the market average98.39% above the market average
14.29% below the sector average14.29% below the sector average14.29% below the sector average14.29% below the sector average14.29% below the sector average
Growth
49.81% above the market average49.81% above the market average49.81% above the market average49.81% above the market average49.81% above the market average
14.29% above the sector average14.29% above the sector average14.29% above the sector average14.29% above the sector average14.29% above the sector average

What The Brokers Say

Strong Buy 12
Buy 3
Neutral 6
Sell 0
Strong Sell 1
Total 22
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Aviva Dividends

  Latest Previous
  Final 2nd Interim
Ex-Div 08-Apr-21 10-Dec-20
Paid 14-May-21 21-Jan-21
Amount 14.00p 7.00p

Trades for 27-Jul-2021

Time Volume / Share Price
16:26 202 @ 385.30p
16:26 23 @ 385.30p
16:26 520 @ 385.30p
16:26 185 @ 385.30p
16:26 220 @ 385.30p

Aviva Key Personnel

CFO Jason Windsor
CEO Amanda Blanc

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