Aviva Share Discussion Threads

[speedsgh] 08/3/2018 09:04

Dividend Declaration -

On 7 March 2018, the Directors agreed a recommendation to shareholders of a final dividend of 19.0 pence per share on Aviva ordinary shares. Subject to shareholder approval at the 2018 Annual General Meeting, the final dividend for the year ending 31 December 2017 will be paid on 17 May 2018 to shareholders on the Register of Members at the close of business on the record date of 6 April 2018. Holders of Aviva American Depository Receipts (ADRs) will be paid the dividend approximately four business days after the payment to ordinary shareholders...

[enami] 08/3/2018 08:32

Yes strange to be down. I was just watching Bloomberg TV and they said maybe because JP Morgan worried about the "miss" in Canadian non-life business.

speedsgh - yes thanks I agree 5 April which makes it in this tax year for income. I though they usually made it XD for the next tax year.

[edmundshaw] 08/3/2018 08:29

Nice snippet from part I:

With our Solvency II cover ratio remaining above our working range, we have plans to reduce hybrid debt by a further £900 million in 2018 and will consider other opportunities to deploy surplus capital to strengthen our businesses and enhance long-term shareholder returns

[bg23] 08/3/2018 08:28

like you, I cannot see where the offer comes through and remain mystified as to their continued underperformance.

its evidently a sector out of fashion , which is a shame, bit its not ........as it allows us to continue to reinvest the dividends into an excellent business.

lgen also?

[edmundshaw] 08/3/2018 08:19

Well I cannot see why the share price dipped at open, I have added to an overweight position. 5%+ CAGR + 55-60% dividend rate would see a dividend in 2020 of around 35p. On a yield of 5% that would suggest a share price of 700p, or 40% upside, which is pretty appealing for a well-run elephant business...

[speedsgh] 08/3/2018 08:14

Dates for final dividend payment of 19.00p are on their website. Whilst they are still marked as 'subject to change', the payment date matches the date is the Final Results announcement. Going by previous form, the dividend dates will be confirmed via a separate rns later today alongside dates for the 8.75% prefs.



2017 final dividend record date* - 06 Apr 2018
2017 final dividend payment date* - 17 May 2018

Final dividend will therefore go XD on 5 April.

[alphorn] 08/3/2018 08:11

Strange opening. Expectations and outlook must have disappointed the market?

[wynmck] 08/3/2018 07:53

Enami-record date 6 April

[broadwood] 08/3/2018 07:53

In corporate news, life insurer Aviva grew earnings per share 7% and dividend 18% in 2017 and has upgraded its growth targets to aim above 5% EPS growth from 2018, with 55-60% to be paid out in dividends.
With a capital surplus of £12.2bn under the EU Solvency II rules, the company has a solvency cover ratio of 198% that it said will allow it to deploy £3bn of excess cash in 2018 and 2019.

[dr biotech] 08/3/2018 07:37

Seems to be just above consensus. This is one of my largest holdings, let’s hope for a positive reaction.

PE of 12-14 would put the share price around 6-700..

[enami] 08/3/2018 07:19

19p dividend paid 17 May

I could not find the ex dividend date but is normally the first Thursday after 5 April so I guess 12 April for XD

[skinny] 08/3/2018 07:02

Profit

· Operating EPS1,2 up 7% to 54.8 pence (2016: 51.1 pence)

· Operating profit3 up 2% to £3,068 million (2016: £3,010 million)

· Operating profit from eight major markets excluding divestments up 6% to £3,508 million (2016: £3,300 million)

· IFRS profit after tax £1,646 million (2016: £859 million)

Dividend

· 2017 total dividend per share up 18% to 27.4 pence (2016: 23.3 pence)

· Dividend payout ratio 50%, 2017 target delivered

Capital

· Solvency II capital surplus £12.2 billion (2016: £11.3 billion)

· Solvency II cover ratio1,4 198% (2016: 189%)

· Operating capital generation1 £2.6 billion (2016: £3.5 billion)

· IFRS net asset value per share1 423 pence per share (2016: 414 pence)

Cash

· Cash remittances1 up 33% to £2,398 million (2016: £1,805 million)

· Group centre liquidity £2.0 billion (2016: £1.8 billion)

Growth

· General insurance net written premiums up 11% to £9,141 million (2016: £8,211 million)

· Value of new business1 up 25% to £1,243 million (2016: £992 million)

· Aviva Investors fund management revenue up 14% to £577 million (2016: £506 million)

· Total group assets under management1 (AUM) up 9% to £490 billion (2016: £450 billion)

Combined ratio

· General insurance combined operating ratio1 96.6% (2016: 94.2%5)

1 This is an Alternative Performance Measure (APM) which provides useful information to enhance the understanding of financial performance. Further details of this measure are included in the 'Other information' section of the Analyst Pack.

2 This measure is derived from the Group adjusted operating profit APM. Further details of this measure are included in the 'Other information' section of the Analyst Pack.

3 Group adjusted operating profit is a non-GAAP Alternative Performance Measure (APM) which is not bound by the requirements of IFRS.

4 The estimated Solvency II position represents the shareholder view. This excludes the contribution to Group Solvency Capital Requirement (SCR) and Group Own Funds of fully ring fenced with-profits funds of £3.3 billion (2016: £2.9 billion) and staff pension schemes in surplus of £1.5 billion (2016: £1.1 billion). These exclusions have no impact on Solvency II surplus. The estimated Solvency II position includes the pro forma impacts of the disposals of Friends Provident International Limited (£0.1 billion increase to surplus) and the Italian Avipop Assicurazioni S.p.A (£0.1 billion increase to surplus). The 31 December 2016 Solvency II position included pro forma adjustments for the impact of the announced disposal of Antarius and the future impact of changes to UK tax rules announced by the Chancellor of the Exchequer's Autumn statement, which was removed following clarification in the 13 July 2017 Finance Bill. The 31 December 2016 Solvency II position also includes an adverse impact of a notional reset of the transitional provisions (TMTP) to reflect interest rates at 31 December 2016 £0.4 billion decrease to surplus.

5 2016 excludes the impact of the change in the Ogden discount rate of £475 million, which was recognised as an exceptional adjusting item. 2016 also excludes the impact from an outward quota share reinsurance agreement written in 2015 and completed in 2016 in Aviva Insurance Limited (AIL).

more.....

[speedsgh] 06/3/2018 13:41

@edmund...

ON TOPIC...
I concur with your sentiments entirely re prefering special dividends to buybacks, but suspect we may be disappointed in this instance. I believe the CEO has previously hinted that 'additional returns to investors' are likely to take the form of buybacks. Perhaps they will opt for a bit of both to keep all parties happy?

OFF TOPIC...
PHNX already a top 3 holding for me (alongside CSN & PCTN) and likely to take top spot post RI; subject to nothing off-putting arising in the yet-to-be-published circular, I will likely be taking up full rights. Response to Standard Life Assurance purchase appears to have been very well received. Very happy to have overweight PHNX position acting as major ballast churning out steady income in the portfolio.

[edmundshaw] 06/3/2018 11:48

I already have plenty of Aviva. I am expecting good results, dividend and outlook. Not a great fan of buybacks, I'd prefer a special dividend, as in my experience buybacks make little difference to the share price in the shorter term at least with large companies.

BTW, Anyone who likes Aviva should at least cast their eyes over Phoenix (PHNX) in my view, headed for the FTSE 100 after the rights issue, and perhaps cheaper than it should be because most existing holders will have quite enough or too much by taking up the rights, so are not in a hurry to add... (No ramp intended, as, with respect, no-one reading this could buy enough to move the price).

[cwa1] 05/3/2018 13:55

Indeed Alphorn, a lot does depend on how much is "baked in" re expectations. However, from a cursory glance at the share price chart, there doesn't seem to have been a lot of love since what, I at least, perceived to be a pretty solid/good update back on 30/11/17.

Time will tell.....

[alphorn] 05/3/2018 12:41

It will all depend upon the expectations for the results on Thursday. I expect them to be good but are expectations too high?
Happy to hold.

[cwa1] 05/3/2018 08:16

Happy enough to grab a slug at 495p this morning. SEEMS like a decent price to me so couldn't resist. Time will, of course, tell if that is indeed correct or not.

Fingers crossed for no nasties on Thursday and good fortune to all holders here.

[grahamburn] 04/3/2018 15:41

Aviva boss Mark Wilson to lift divi thanks to £2bn cash pile
Rosamund Urwin

March 4 2018
The Sunday Times
Economics

Analysts expect Aviva, which sponsors premiership rugby, to report an operating profit of up to £3.2bn

Aviva is expected to ramp up its dividend this week as part of a three-point plan to splash out an estimated £2bn in surplus capital.

Analysts believe Britain’s largest insurer will use about £900m to pay down debt, with another £500m earmarked for spending on bolt-on acquisitions. The balance, about £600m, could be used for some sort of capital return. Analysts said this could take the form of a special dividend, an increase in the regular dividend or a share buyback.

The consensus is for a dividend of 26.4p, up from 23.3p last year.

Analysts forecast that the insurer will report an operating profit of between £2.9bn and £3.2bn.

Chief executive Mark Wilson slashed the dividend when he joined Aviva in 2013, but has increased the payout every year since then. Last November, Aviva completed a £300m share buyback.

In addition to cost-cutting and conservative capital management, changing views on life expectancy are likely to offer a little more financial room for manoeuvre.
While the average Briton is still living longer than in previous generations, the rate of improvement in life expectancy has declined sharply. Previous actuarial forecasts predicting improvements would continue at breakneck speed now look to have been overdone.

[zho] 23/2/2018 14:36

Insurance giant Aviva PLC (LON:AV.) said it had bolstered its capital surplus by selling its entire shareholding in life insurance and pensions joint ventures Cajamurcia Vida and Caja Granada Vida for €202mln, or £178mln.

The FTSE 100 group has sold the stakes to the state owned lender Bankia for 2.1 times' Aviva's share of the IFRS net asset value and 22.5 times' Aviva's share of earnings after tax of these businesses.

[skinny] 13/2/2018 07:58

Aviva plc ("Aviva"), Hillhouse Capital Group ("Hillhouse") and Tencent Holdings Limited ("Tencent") have completed the transaction to develop a digital insurance joint venture in Hong Kong.

The joint venture has been approved by the Hong Kong Insurance Authority and is expected to start operating under its new corporate structure during the first half of 2018.

Aviva, Hillhouse and Tencent announced in 2017 their agreement to develop an insurance joint venture in Hong Kong, by which Hillhouse and Tencent have acquired a combined 60% shareholding in Aviva Life Insurance Company Limited ("Aviva Hong Kong").

[cc2014] 09/2/2018 08:41

Bought some for my SIPP at 490.5

Nice steady dividend plus reasonable chance of return to 530 in due course.

Lots of stocks out there with more bang for my buck but wanted relative risk free for pension.

AV. has been kind to me before