Aviva Share Discussion Threads

[whatsup32] 02/4/2020 20:57

America looks like closing positive by 2%. Hopefully we have a positive market tomorrow

[uppompeii] 02/4/2020 20:53

It's not for any other reason than paying dividends in a time of crisis is seen as bad form. If they extend furloughing benefits to those reliant on dividend income I would go along with it.Otherwise it is nothing more than scalping thousands of people reliant on their savings to live.

[whatsup32] 02/4/2020 20:32

So why are they been advised not to pay dividends?. Doesn’t make sense , are they different to other insurer who actually may have significant exposure.

Given this recommendation from EU , I would hope we get some guidance from Aviva. Before buying Aviva shares I actually checked their results and track record and was pleased with both .

I also believe they are in a strong position financially but Share Price is telling me different and company isn’t saying much

[eeza] 02/4/2020 20:28

Well I'm with spud.
The reason you invest in an Income stock is ......er capital appreciation. Not !!

[gary1966] 02/4/2020 20:19

Standard BII doesn’t cover pandemics and so I am not too worried about that.

[cjac39] 02/4/2020 20:17

What’s up I’ve spoken to them about business and travel interruption. They do have exposure but they have limited exposure and they have reinsurance. Overall my personal view is a positive underwriting result this year across life and general but obviously ifrs profits will fall on mtm losses on assets

[whatsup32] 02/4/2020 20:03

kenmitch

I held Kingfisher and they had a share buy back scheme for years and their share price continually dropped while they were buying back .

I also hold Microsoft who also have share buy back scheme and their share price continually went up from $25 to $186 but now $150 due to market correction . Their dividends also went up year after year.

News from the company hasn’t been much other then they will pay out on travel insurance claims. I took out travel insurance with Columbia and was advised I was covered for the virus should I get it for treatment and repatriation. No cover for tickets, hotels, etc as I would need to contact airlines for that. I don’t see Aviva taking a beating on these claims . It’s business interruption that concerns me.

I hope you are right and share price is positive tomorrow.

[eeza] 02/4/2020 20:01

"BOE have already called on UK insurers to reconsider their dividends.

Size of the Aviva dividend has arguably been a millstone around the Company."

No. The BOE have advised BOD's to consider whether their dividends/ remuneration policy is appropriate & affordable. There has been no instruction. It is advisory.

The millstone around AV's neck has not been the dividend but the calibre of w*nkers in the boardroom.

[spud] 02/4/2020 19:59

I suspect it’ll get majorly hammered if they cut or cancel. After all, pension companies invest here for the yield, not capital appreciation. And most of the shares here are owned by pension companies.

You have been warned - Tin hats at the ready!

spud

[spcecks] 02/4/2020 19:51

I'll just wait for the company to tell us they are not paying it.

[kenmitch] 02/4/2020 19:45

whatsup32

Have you noticed how Companies that have spent £billions buying back their shares have seen their share prices CRASH? It’s incredible how even after a market crash some cannot work out that buybacks are an obscene waste of money.

With dividends investors get real money. With buybacks they get nothing.

As for AV, share price getting a beating tomorrow. Not so sure. The price has already been hammered, and not paying the dividend will mean cash saved. We’ll soon know but dividend cut might even see the share price rise.

BUT that’s a guess.Key thing is to try and get some to see the obvious. Buybacks are a waste of money.

[whatsup32] 02/4/2020 19:45

I thought they had re adjusted dividend payments just recently and that it was more then covered.

[essentialinvestor] 02/4/2020 19:43

BOE have already called on UK insurers to reconsider their dividends.

Size of the Aviva dividend has arguably been a millstone around the Company.

[essentialinvestor] 02/4/2020 19:39

UK may follow. As with Banks.

[spcecks] 02/4/2020 19:39

Also glad we're out of the Eu.

[gary1966] 02/4/2020 19:37

Glad we’re out of the eu then!!

[cjac39] 02/4/2020 18:32

As an insurance Ned I can tell you it doesn’t work like that now!

[wba1] 02/4/2020 18:22

cjac39;
Not suggesting they do it now - just that they start thinking about after the storm. I would like to see it done when the market recovers and prep for such a move would take at least a year.
Fair point about the neds and PRA, but I remember Prosser steamrollering his neds into backing him in defying the FSA.

[cjac39] 02/4/2020 18:13

I’m not sure now is right environment to lower the diversity of the business. It’s probably helping them a fair bit today vs being more monoline.

It won’t be the mgmt making the call on the divi it will be the neds and the PRA. My current best guess is they won’t unless they get agreement from the PRA that’s it’s reasonable which probably means a cut rather than a zero but maybe that’s wishful thinking!

[wba1] 02/4/2020 18:03

I understand the pain of those reliant on the dividend but will be surprised if it is paid. Aviva management have never had real balls. I am more interested in the long term. The share price will recover but even before the current situation looked undervalued. I wonder if the new Aviva CEO will take this opportunity to revisit his strategy? I was never clear whether the calls to split the UK Life and UK General operations included separate floats on the market - but if not I wish they would do so. I recall Hartford in the US having a similar issue in the late 90s (a composite operation which failed to fully recognise the value of the parts in its market cap. They took the decision to split off Hartford Life and float 20% in an IPO. This enabled the market to fully value the life operation and for this to be reflected back to the 80% retained in the parent. I think the minimum float in London is 25%, but cannot see why the same strategy would not work for Aviva.

Perhaps this crisis is a chance for some creative thinking from Aviva management for the first time in years.

[essentialinvestor] 02/4/2020 18:03

Reducing the severity of 20% of cases that currently require hospitalisation
would be a huge advance foward.

Would hope this would be at least partly possible long before any vaccine becomes available.

[yf23_1] 02/4/2020 17:52

Interesting how the Spanish Flu died out....
it mutated into more deadly and less deadly forms and the more deadly forms died out because it killed the hosts more quickly leading to less transmission of the more deadly form.

[spcecks] 02/4/2020 14:50

whatsup32 I agree very nasty times.