Aviva Share Discussion Threads

[edmundshaw] 25/11/2019 11:40

Tesco top man was pretty dull too, had a poor press to start with but has run the business OK. It is not all about charisma, being an effective CEO.

[spud] 25/11/2019 11:39

I think its only fair we give the new guy a chance. It's amazing how sentiment changes towards the men at the top when allied to a soaring share price...

spud

[whatsup32] 25/11/2019 11:27

It was a personal view , I haven’t warmed to the new CEO in any way . He lacks flare , leadership and communication skills. Just get the feeling after a very long search for a new CEO we got lumbered with the 3rd option.

I’m a long term holder and happy to hold.

[imagining] 25/11/2019 10:32

The jury is still out on the leader. As targets are reached/surpassed,the share price will soar.

[whatsup32] 25/11/2019 10:18

Seems negative sentiment and selling has evaporated. Hopefully onwards and upwards from here.

We have a solid company with a weak leader.

[skinny] 23/11/2019 08:39

Frustrating as these (as pointed out above) have been a pretty steady income play.

I first bought @294 in 2010 and have bought and sold a few times since.

Ignoring any capital gains on the churning, I've still had more than my original cost back in dividends and the even the current price stands me in a decent profit.

Horses for courses!

[dr biotech] 22/11/2019 12:23

Nearly 8% yield here, well covered. If it was guaranteed for say 5 years I could give up the day job.

New man seems a bit underwhelming. Can't say I've listened to the presentation - tbh I'm not sure what they could say that would make me sit up and notice short of selling the business. I don't pretend to fully understand the accounts - lower COR is obviously better, but how they work out how much capital they can release seems to be a bit of a grey area.

[tfergi] 22/11/2019 11:39

It has been unloved for years. I am just hoping that they don't know something I don't !!

[spud] 22/11/2019 11:10

Aviva to cut personal lines products down to 40 from 400

CEO Colm Holmes says the provider is targeting growth in growth in SME and corporate and specialty and insists new strategy will not lead to more redundancies. Aviva is targeting a 20% cost reduction in its personal lines business, according to Colm Holmes, chief executive officer of general insurance. “Our personal lines performance over the last 18 months has been less than we would have wanted it to be in terms of margin, not necessarily growth,” Holmes stated. He added that the provider is looking to simplify the business in this sector and cut the number of products from 400 to 40 by 2022.

This is across all of its channels – strategic partners, brokers, affinity and direct. RELATED ARTICLES Ardonagh takes broker director from Aviva Aviva targets 20% premium growth in GI business Colm Holmes swaps Aviva UK post for Canada Maurice Tulloch wins race to be Aviva CEO Aviva CEO Maurice Tulloch said yesterday (20 November) that the business was aiming for a 20% growth in premiums across its GI division.

Holmes explained that Aviva was aiming for high single to double digit growth in SME and double digit growth in corporate and specialty. Redundancies In June, the insurer revealed a plan to reduce its expenses by £300m per annum by 2022. At the time it stated that this would lead to around 1,800 role reductions across the company over the next three years. Holmes argued that the new strategy revealed this week would not add to that number. “We’re not targeting redundancies above the ones Maurice announced in the half year,” he confirmed. “That’s role reductions so it includes natural attrition as well. But there will be some redundancies and exits from the business. It’s a global target.”

Aviva also said it had it had simplified the business into five operating divisions: Investments, Savings & Retirement; UK Life; General Insurance; Europe Life and Asia Life. Separation Holmes confirmed that the separation of the general insurance and life businesses in the UK is close to being completed, but some regulatory approval is still needed. “There are parts of operations and IT that will take some more time to move,” he explained. But the CEO added that the provider would still have a strong focus on cross-selling between the two divisions.

Aviva is also targeting a 3% improvement in combined operating ratio by 2022, with the aim to end up between 93-95%.

spud

[skinny] 22/11/2019 11:06

Hmmmmm - the silence is deafening here this morning.

[p0pper] 22/11/2019 10:55

Makes you wonder what Hedge Funds / Insti's want? Divi well covered, plenty of free cash flow, getting on for 8% divi, and £3b profits FFS what is the problem with AV.

[eurofox] 22/11/2019 10:53

taken over?

[shieldbug] 22/11/2019 10:24

Listening to the Capital Markets Day presentation on YouTube. 424 views so far.

Worryingly little emphasis on technology (no mention in first 20 minutes) - and in a context of cost cutting and "efficiency". I wonder where this company will be in 5 years.

[whatsup32] 21/11/2019 18:46

I listened to the previous webcast and I can tell you I was bored to death. Never again .

[essentialinvestor] 21/11/2019 18:32

To be fair, has anyone listened to the presentation webcast?.

There must be some substance to it?.

[fenners66] 21/11/2019 12:17

I take back my comments about adding new signs and stationery

I did not realise they were planning on actually

"creating separate divisions for the Non-Life business, a separate Investment, Savings & Retirement division in the UK and a separate European and Asian Life businesses."

We've all seen business change names and restructure sales from regional to function and back again....

but separate divisions will need new divisional directors and sacking old ones ....etc....etc....

I expect more "exceptional " costs to come.....

[eurofox] 21/11/2019 11:53

bound to go down more following today's director buy

[nerja] 21/11/2019 11:36

Looks like another dip coming ,the effing 400p support did not last long, that 380p is looking more likely sadly, if that goes then it’s a retest of the summer low.

[spud] 21/11/2019 11:24

Aviva leaves investors underwhelmed with "slow burn" strategy
"Fundamentally Aviva strategy calls for a slow burn story that requires consistent execution versus the more aggressive action regarding the shape of the group that some were hoping," said analysts at Citi

Aviva plans to save £300mln, having also announced in June that it would axe 1,800 jobs to cut costs

Aviva PLC’s (LON:AV.) shares slid after the life insurer said it will sell its Hong Kong joint venture as part of a wider strategy update that was less aggressive than some investors were hoping.

Maurice Tulloch, Aviva’s chief executive since March, said he planned to make Aviva “more commercially focused” and “manage costs rigorously and be more disciplined in how we invest”.

Tulloch's strategy shift will target a new 12% Solvency II return on equity and a £8.5bn-£9.0bn remittance target but made no change to the progressive dividend policy, £1.5bn debt reduction program or £300mn cost savings target.

"There is a lot of underlying detail to work through but fundamentally Aviva strategy calls for a slow burn story that requires consistent execution versus the more aggressive action regarding the shape of the group that some were hoping," said analysts at Citigroup.

Citi said Solvency II ROE target was "unconventional and will take some time to fully digest" and noted that while the new remittance target for 2019 to 2022 is lower than the previous run-rate guidance, "this is not surprising given the reduction in yields and importantly still more than covers central costs and dividends".

Shore Capital pretty much agreed, saying the plans are "much as we expected with the focus on doing same things, but just being better at doing them", but adding that "we can’t help but feel that investors may be a little underwhelmed by the strategic review".

Asia rejig
As well as reiterating Tulloch's earlier plans to separate its UK Life and UK Non-life activities, as well as creating separate divisions for the Non-Life business, a separate Investment, Savings & Retirement division in the UK and a separate European and Asian Life businesses.

Aviva confirmed it will sell its Hong Kong joint venture, known as Blue, to JV partner Hillhouse Capital, having said on Monday that it was still mulling options.

The company also said it was still in discussion with its partners in Vietnam and Indonesia about the future of those businesses but denied that it has any plans to sell off its businesses in China and Singapore, calling them “profitable businesses, delivering attractive growth and generating positive cash-flow”.

Aviva already announced in June that it would axe 1,800 jobs to cut costs, just a few months into Tulloch's tenure following his appointment in March.

Shares dropped nearly 4% to 402p in Wednesday morning trading, its lowest price in a month.

spud

[asagi] 21/11/2019 10:49

is this what we changed CEO for? A very disappointing start.

Asagi (long AV.)