Aviva Share Discussion Threads

[bothdavis] 28/3/2018 17:23

Mmmmmmmmm, always a good idea to 'sue' the company you have 'invested' in. Then watch your share value sink due to the disruption!

[cwa1] 28/3/2018 08:42

It would be ironic(and quite reasonable IMHO) if Aviva ended up having to compensate all the holders that directly lost out through their outrageous actions. It would also be nice to see Slaughter and May sent packing with a flea in their ear, though that might be too much to ask....

[cordwainer] 27/3/2018 17:26

edmundshaw, you wily old sod, I'm mildly jealous of your preference share punt now :-)

[muffster] 27/3/2018 12:18

So who here is pressuring the directors to refund those holders that panicked, sold and lost money?This was a case of taking value from a minority group of shareholders and passing to the majority shareholders.

[villarich] 27/3/2018 11:59

I think it shows a level of arrogance on the part of the board. Assuming everyone would just roll over and accept it. To admit the mistake so quickly proves it was flawed from the start. Very poor.

[cwa1] 27/3/2018 08:39

Slaughter(how appropriate) and May seem to have been the guilty legal party-BUT they only gave the advice-as Edmund says it is the board's decision whether to go with it or not. IMHO they made a "Ratners" style decision, that could easily come back to haunt them, without putting enough thought or due diligence in to the consequences of their actions.

[edmundshaw] 27/3/2018 08:27

Legal counsel did what they were paid to do, work out the legalities of the plan.

But the FD and CEO should have bonked the idea on the head at once, they have the wider picture, should have seen the consequences - FFS even I could see it was a bad idea after an initial enthusiasm, once I looksed at one of the prospectuses. CEO might have some very feeble excuse as his is perhaps not a legal detail role; I don't see any for the FD, he just didn't do his job.

[joe say] 27/3/2018 07:25

Not only stupid but also why they’re in the role in the first place


If they couldn’t see the downsides then clearly they’re in the wrong job

[lord gnome] 27/3/2018 07:18

You just have to ask how they could be so stupid - and I mean stupid.

[dennis russell] 23/3/2018 13:55

I sold AV. and bought LGEN with the money. Similar yield, P/E much better.

On the other hand, I invested similar amounts on similar 'market-annuity' terms 20 years ago in Aviva and Prudential - and the Aviva investment is paying no less than 40% more....

[essentialinvestor] 23/3/2018 09:58

It's not just reputation, it's arguably quality of decision making.

[speedsgh] 23/3/2018 09:57

Stemis - Agreed. I was thinking more of the CEO/board's reputation as opposed to how the Aviva brand is viewed by the average man in the street, although the latter is of course far more critical. Up until now I believe the CEO has had an unblemished record, certainly during his tenure at Aviva. That is undoubtedly no longer the case.

I watched the FY17 results webcast. Had never seen/listened to the board previously. On a purely supericial level I have to admit that I didn't warm to the CEO or CFO. Just seemed weird having a great British brand like Aviva being fronted by a New Zealander & a Yank. Perhaps I'm slightly old fashioned. At the end of the day, so long as they do the biz, I shouldn't really care.

[stemis] 23/3/2018 09:32

Even if those who sold Aviva Prefs had a claim it's unlikely to be material to Aviva. Tens of millions rather than hundreds. As to it's reputation, well, I doubt most policy holders or customers have even heard of Pref shares, let alone care...

[speedsgh] 23/3/2018 09:19

grahamburn - Just goes to show how quickly a hard-earned reputation can be undone.

[grahamburn] 23/3/2018 09:16

Seriously doubt that scenario as the company would require specific permission to do so.

As a footnote to the discussions on here recently, the CEO has undoubtedly made a public relations mis-step on the preference shares (even if it made sense in terms of the new regulatory capital scenario as well as financially - for the company/shareholders), but it has to be admitted that in 5 years he has turned the company from a basket case into an insurance powerhouse.

[speedsgh] 23/3/2018 09:06

So we now need to know, have Aviva been in the market buying up preferences shares of holders who have been spooked into selling by the uncertainty caused by the company's original statement that they intended to redeem the prefs at par? If they have, that would look very bad indeed.

[edmundshaw] 23/3/2018 08:21

Well my preference share "punt" has worked out handsomely.

Sadly, my Aviva ords are not doing quite so well right now... recent falls cancelling out more than half the gains on the prefs.

I hope and expect, though, that the market will have its usual short memory regarding the pref fiasco. However, anyone who panic sold(?) prefs at 120p or below might not want to just shut up and go away...

[stemis] 23/3/2018 07:49

Heads must roll for this, surely...

[joe say] 23/3/2018 07:47

Right decision - YES

Will I vote for director re-elections - NO, categorically No

[lord gnome] 23/3/2018 07:29

I just feel for all those who have been mugged into selling their holdings at a knock down price.

[skinny] 23/3/2018 07:28

Yes - and no egg involved whatsoever!



Statement on Aviva plc and General Accident plc preference shares

Since the full year results announcement on 8 March 2018, Aviva plc ("Aviva") has heard a wide range of views on its preference shares*, has spoken to a large number of investors and has received strong feedback and criticism.



As a result Aviva has listened. Aviva announces that it has decided to take no action to cancel its preference shares.

Under current regulation the preference shares will no longer count as regulatory capital in 2026. Aviva will work towards obtaining regulatory approval for the preference shares, or a suitable substitute, to qualify as capital from 2026 onwards. If as we approach 2026 Aviva needs to reconsider this position, it will do so after taking into account the fair market value of the preference shares at that time.

On 8 March 2018 Aviva stated it has the ability to cancel the preference shares at par value, having received clear legal advice. The review of the preference shares was initiated as a result of Aviva's duty to examine what is right for the business, balancing the interests of ordinary shareholders and preference shareholders. Aviva needed to address the issue of the preference shares given regulatory capital considerations and their cost.

Aviva is in a strong financial position and still plans to deploy £3 billion of excess cash in 2018 and 2019 to reduce hybrid debt, fund bolt-on acquisitions and buy back ordinary shares.

Mark Wilson, Group Chief Executive Officer of Aviva plc, said:

"I am very aware that Aviva is in a position of trust with our customers and investors. To maintain that trust it is critical that we listen to and act on feedback. The reputation of Aviva, and the trust people have in us, is paramount. Our announcement today means that preference shareholders can rest secure in their holdings.

The Board and I have a duty to consider not just the financial implications of our actions. We must consider the impact to Aviva's wider reputation. I hope our decision today goes some way to restoring that trust."

*Preference shares issued by Aviva plc and General Accident plc

-ends-