Aviva Share Discussion Threads

[whatsup32] 20/11/2019 09:05

Down roughly 8% this week based on the news been boring .
The main reason I believe for the share price drop is CEO perceived as second rate .

Not sure I would disagree .

Happy to hold ling term as both div and 12% growth is ok with me

[essentialinvestor] 20/11/2019 08:45

Otherwise, just a bit underwhelming?

[p0pper] 20/11/2019 08:45

Seems an ok strategy and definitely no fireworks but seems the market doesn't like it, strange really as the market wanted change and we all know the insurance sector is boring so what did they expect? Either the bargain of the week or going back to £3.50? anyone? hazard a guess, all the insurance sector well down today as well.

[essentialinvestor] 20/11/2019 08:41

Progressive dividend was mentioned at the last results, flagged it up
at the time - they are giving no guarantee on the payout in other words.

And as it should be business performance that determines the payout,
it's the right policy imv.

[edmundshaw] 20/11/2019 08:39

Sounds like management just want to run the business more or less as it is, just a bit more efficient and looking for some growth from overseas. Dividend safe.

It may not be earth-shaking or dynamic, but with a yield moving towards 8% then, barring the unforeseen, still very undervalued.

[tfergi] 20/11/2019 08:27

I don't think the new team are assertive or have enough ambition or direction. To samey as previous management.We need a strong positive leader or we are just going to drift down.This latest collapse could have totally been avoided.....

[fenners66] 20/11/2019 08:24

market is down today so to some extent it hides the Aviva reaction - but what we can see , the message has Not galvanised the share price in spite of the market.

How much do these clowns get paid to write such as my quote above ??!!

[uppompeii] 20/11/2019 08:19

Aviva really does seem to struggle to do anything positive share price wise.

[w1ndjammer] 20/11/2019 08:08

re : BBC yes they copied it straight out of this mornings RNS

WJ.

[hydrogen economy] 20/11/2019 08:08

I suspect that the commitment to a progressive dividend (presumably from current levels) and the financial forecasts will get the attention but these will not survive any strategic mis-steps. What they tell us about this seems to be largely “as we were but faster cheaper and better”. Not very convincing. Market initial reaction is skeptical.

“UK Life will also reinvest in profitable new business to increase cash-flows over the long-term” That’s a new idea?

General Insurance: we are targeting significant profitable growth in our General Insurance businesses through speed, simplicity and efficiency” Along with everyone else.

Europe Life: “We will continue to focus on the fundamentals of distribution, product mix and cost efficiency to improve our performance.” Sounds like more of the same.

Asia Life: Keep Singapore and China sell Hong Kong, try and offload Vietnam and Indonesia. Vietnam and Indonesia have the largest populations in SEA with high growth rates, growing middle class, significantly under-insured and with money to invest. Not the easiest places to do business and maybe the decision is correct but I worry this may be too short-term a view.

[imagining] 20/11/2019 08:07

@fenners66- It does seem a bit amateurish frankly and does not fill me with confidence. I'm starting to believe this CEO does not 'cut the mustard'. Is he 'out of his league' or what?

[w1ndjammer] 20/11/2019 07:55

next leg to 500p

WJ.

[fenners66] 20/11/2019 07:20

imagining
19 Nov '19 - 16:26 - 352 of 359
"I fear tomorrow's Capital Markets day announcements will turn out to be a damp squib."

Well I have just read the announcement and my take is that its a damp squib at best !


How can any management publish this - ?

" In 2019, we estimate a contribution of GBP300-GBP400 million from management actions, reflecting favourable development of longevity reserves and other items.

In the longer-term we are signalling an expected range of GBP0 to GBP200 million per annum; "

ZERO to £200m ??!!!!

Are they trying to draw attention to the idea they do not have a clue what they are doing ?

As for the phrase "management actions" - no specifics - looks like they have not even got any ideas yet !

[whatsup32] 19/11/2019 20:43

Thanks for the links spud

[kenmitch] 19/11/2019 17:14

imnagining.

A lot of share prices dipped this afternoon, so probably best not to read too much in to AV. joining in. We'll soon see the market reaction to the Capital Markets event tomorrow.

fwiw I'm pleased that Aviva have decided not to sell their Singapore or Chinese operations. Why should they just so that Institutional invesstors can make a quick kill?

Too often pressure like this can force Companies in to unwise decisions.

e.g was it really such a good idea for Whitbread to sell off their very successful and growing Costa business and to be left with their Premier Hotel business which is in a very challenging and competitive sector? We paid just £45 recently despite Premier again being right at the top in latest Which update. They again are better across the board, than much more expensive hotels. Yet they are offering rooms at £45 and lower!

As long as Aviva's profits can continue to support further increases in the current 7% dividend (the yield was even higher when the share was around £3.50 not long ago) I'm very happy.

Aviva share price, even after recent 20% bounce still looks stunning value, as do so many similar bombed out shares. e.g Legal and General and also paying out a big and growing dividend.

Good quality value shares are stunning value and arguably the best value they've been for decades, so there's no need for Aviva to dance to pressure from big investors looking for short term gains.

[eurofox] 19/11/2019 16:40

won't mind a drop again tomorrow having shifted a few this morning

[essentialinvestor] 19/11/2019 16:28

* UKX coming off early gains.

[imagining] 19/11/2019 16:26

It's a real pity that the early gains have mostly been lost. I fear tomorrow's Capital Markets day announcements will turn out to be a damp squib. Am wondering if some insider information has already leaked out causing this afternoons collapse. Does this new CEO cut the mustard or am I just being paranoid??

[tfergi] 19/11/2019 16:12

Didn't hold on to today's gains