Aviva Share Discussion Threads

[whatsup32] 09/5/2024 09:36

Direct Line
"Insurer takes direct hit from reverse in motor customers" the Times today
Seems motor policies fell q on q by 2.6%

Winslow added " we have seen a positive start to 2024 trading with double digit gross written premium growth in our motor, home and commercial business "

Future looking brighter for DL ?

[uppompeii] 09/5/2024 09:34

Retired at 49 after redundancy and couldn't face going back...61 now and wouldn't have changed it. Time with kids, grandkids, lots of work on the house, building an annexe etc.Generally funded by the tech boom and dividends. Oh, and the wife continued to work a few more years.

[ayl30] 09/5/2024 09:26

I retired at 50. Worked part time / projects and now devote my time to charity work funded by pension / investments. Would recommend it to any one brave enough. Trip is to build a fund first to see you through unexpected costs. Now on 2nd major hol of year, greetings from Slovenia!

[t-trader] 09/5/2024 08:57

I retired at 43 and stock market investing was how I was able to achieve this.
I started investing at 16 with a few thousand I had saved from my childhood. Lost it all within a year. Then started working and made additional investments and had many ups and downs and was wiped out again by the time i was 25. Decided to stay away from the markets then, but in the meantime put a lot of focus on why my investments went wrong and the companies I had chosen to invest in. Returned to investing at 28 , this time going slow and steady and not trying to make a quick buck. My focus was primarily on UK dividend income stocks and US technology stocks. Never looked back since and now earn 6 digits in dividend income alone. I still make a few bad calls occasionally but primary lesson is be patient, spread your risk and do thorough research. Too many folks try to make a quick buck, which is the downfall of many.

PS: Always keep a decent cash reserve to take advantage of market corrections or unforeseen eventualities

[longwell] 09/5/2024 08:25

Mountpleasant, I too retired early at 53.Lots of time with grand children and I actually have time to enjoy life.All those on these boards should take his achievement as a challenge to not just make money but better their lives as we all too easily get caught up in our jobs and miss IMHO the point of living.

[smurfy2001] 09/5/2024 08:21

mountpleasant, your post relates. I retired in my 40s and get the disbelief and envy. People don't want to hear of your early retirement whilst they are still working their butts off, it can be a conversation killer like telling someone you work as an accountant.

[1robbob] 08/5/2024 20:42

whatsup32
No. .the Buyback is not complete, still £115m to go

[carpingtris] 08/5/2024 19:57

You must be a pasta and baked potato sort of person?

Keep it simple :)

[whatsup32] 08/5/2024 19:22

Transaction in own shares was last 3rd May. Buyback complete?

[mountpleasant] 08/5/2024 18:37

in London town, theres a lot of showing off... conspicuous consumption.
If I see a car, Audi, its a premium version.
Its better to look poor, yet have a 7 figure sum in the bank.
I am still living like a student,,, its great, yet I am in the double-comma club.

[whatsup32] 08/5/2024 17:14

Insurance companies are pretty quick at picking up patterns , you may have noticed high value cars susceptible to theft have had their quotes substantially increased . Audi q5-8 , Land Rovers , BMW’S SUV’S etc.
insurance quotes have gone up substantially to cover higher inflation, lack of new cars and parts and price of new cars continuing to go higher.
Fortunately opposite has happened and profits from insuring cars should be good.

[bhoddhisattva] 08/5/2024 08:11

Sadly in my experience it’s theft that is the issue - too many higher value cars and even horse Lorries nicked - refusing to quote on cars unless in garage or secure storage - and not just the Ferraris and Range Rovers one reads about.

[lewy1970] 08/5/2024 07:49

Motor insurance has and always will be a low margin high volume play. No one posts COR’s below 92 as the market is too competitive. The vast majority of consumers shop on comparison sites - a little brand pull yes but if you are not on the first page price wise you don’t sell anything…..


Yes used car prices are easing but inflation has been built in to the supply chain, the chap spraying the car is paid 20% more than he was 3 years ago….

Margins are typically 5p profit in the pound if you get al your underwriting correct - just look at DLG as they didn’t get it right…

[whatsup32] 07/5/2024 21:37

Insurance companies claimed rates were put up due to .
New replacement cars not available so claimers held on to rentals longer
Parts not available so repairs took longer claimers held on to rental longer
Value of used cars went up due to lack of new cars

That’s all changed
Both used and new car prices have gone down and continue to do so
Parts readily available
EV,s soon available for c£25k

All this is good news for insurers .

Will more competition arrive if insurance sector becomes highly profitable? Probably
But it will take several years for them to get traction and Av should be more than capable to compete .

[fenners66] 07/5/2024 21:22

?
IF there are far fewer claims , the cost of claims falls , the profitability of insurance companies would rise and thus there is incentive for new start up disrupters to reduce insurance costs...

However , we already know that EV's can have minor damage and be write offs because of the damage to batteries.
More electronic gadgetry to ensure safe self driving cars , would inevitably be more expensive to replace... so benefits may well be swallowed up by more expensive claims.

But what we do know is the inflation of the last 2 years gave the insurance companies - they say - the reason to increase costs as their claims cost had risen.

You can understand that as second hand car values rose the replacement like for like cost rose so I get that.
Roll on more car depreciation - they all seem far too expensive still.

[whatsup32] 07/5/2024 19:17

1 Rob

You may find this interesting from Forbes



Car insurance size has dropped from £23.6b to £20b
Despite size of sector actually insurers make loss
£1 in = £1.11 out in claims
Personal injury claims down 8%

Given above , if claims reduce ,cheaper and abundant new cars become more available then claim sizes will drop
Problem up to now was EV’s were very expensive so replacing cost insurers more
Parts were not readily available delaying repairs

I think China BYD and similar will force other manufacturers to reduce list prices too , replacing cars will be easy and less costly .
Also less accidents safer cars will ultimately be better for insurers.

[1robbob] 07/5/2024 16:44

whatsup32

...'Cars are getting safer and more reliable . this should be good for insurance companies'

I think not.
It would put huge pressure on rates if the incident and cost of claims was drastically reduced and not as much benefit for those who are more efficient in managing the cost of claims.

[whatsup32] 07/5/2024 16:31

Fairly low volume of Av. 3.3M showing on HL site. Still a nice rise on no news.

Sage of Omaha said Tesla’s self driving should cut down on accidents, however he isn’t interested in insurance companies (Geico interest).
Also said Tesla was interested in own insurance but hasn’t started yet.

Actually having driven latest cars on highways in America I can say latest technology is making driving a lot safer. Keeping lane , damping cruise control , auto emergency braking, alert if there is cars blind spot ….

I can’t remember last time I had a car that broke down on highway - road either . Used to be cars with snapped fan belts , boiling radiators , leaking oil , running out of fuel was the norm .
Cars are getting safer and more reliable . this should be good for insurance companies

[cwa1] 07/5/2024 15:02

I have never understood how a chart ever changes direction?
.....unless it because of exoginous(sic) events, which of course a Chart can not predict.

I guess that must be when market makers/sellers offer enough people like me a: "how much??!!" price for Aviva shares and then enough people like me say: "I'll have a bit of that-and I don't really care what the chart says", I suppose

[1robbob] 07/5/2024 14:26

I have never understood how a chart ever changes direction?
.....unless it's because of exoginous events, which of course a Chart can not predict.

[markth] 07/5/2024 14:16

Like you I place little faith in "technical" analysis. However if large numbers of people are doing it and getting the same answer the psychology and herd mentality may make some of it a self fulfilling prophecy.My faith is based on dividends. I don't need a chart to see if the company is earning enough cash to cover the divvy, or to watch their cash flow and liquidity.The value of a share is its assets plus the NPV of all its future dividends. That NPV, for long term holders, dwarfs today's share price and so I am not concerned about a few pennies move this way or that predicted by a Chartist. Short term moves are driven by by fear, uncertainty, doubt, greed, hype and other irrational emotional things.

[dr biotech] 07/5/2024 14:02

Over 500p now if you include the pending dividend. I've always wondered how chartist deal with dividends, I think most on here don't, but I'm willing to be enlightened.

[makinbuks] 07/5/2024 12:05

Insurance Premium Tax (IPT) is not VAT, but you might think of it as “VAT for insurance”. It’s a tax that’s applied to insurance premiums received under taxable insurance contracts. It’s applied at two rates: A standard rate of 12%, and a higher rate of 20% for insurance supplied with selected goods and services.

Alcohol and tobacco duties are as well as VAT so its not really a valid comparison