Aviva Share Discussion Threads

[spud] 03/4/2020 17:28

From Evening Standard:If L&G cuts and Aviva doesn't then L&G gets crucified," said one industry observer. "They can't act independently. They need to go as a group....spud

[spud] 03/4/2020 17:18

With L&G confirming, AV have no choice as their share value would be crucified if they chose not to. I expect a similar statement from AV shortly. spud

[salver2] 03/4/2020 17:12

This should in theory move up after legal and general’s announcement

[curriedquaker] 03/4/2020 17:01

Even if they are forced to cancel this year’s dividend, we’ll probably get double bubble with a special dividend tagged onto the year end dividend next spring.
Banks will probably take the same approach.
But I think the dividend is safe this year and have topped up at £2.34.
Interesting to see what the weekend papers have to say on this matter, especially the lack of income into funds and poor pensioners.

[gary1966] 03/4/2020 16:58

Thanks eurofox and well done L&G. Now we will find out what the PRA really meant and if they now take the decision out of the company's hands.

[eurofox] 03/4/2020 16:56

Perhaps this will influence AV. thinking

[eurofox] 03/4/2020 16:55

L&G just confirmed their dividend .....

The Board of Legal & General plc has given careful consideration to the PRA's letter of 31 March.

The Board continues to pay close attention to the need to protect its customers and employees at this difficult time. The Board has carefully considered the need to act prudently in maintaining safety and soundness, and in so doing ensure that Legal & General plays its full part in supporting the real economy. It also recognises the importance of dividend income to many institutional and retail shareholders, particularly in the current environment.

The Board observes that, notwithstanding significant market volatility, the Group's Solvency position remains robust.

Whilst the Board will continue to monitor events, its current intention is to confirm its previous recommendation for a final dividend of 12.64p (2018: 11.82p) giving a full year dividend of 17.57p (2018: 16.42p), 7% higher than 2018.

...in otherwards, up-yours to the EU

[eurofox] 03/4/2020 16:45

210p coming made possible by people who are discounting the dividend.

[waikenchan] 03/4/2020 16:37

I still can't find buy they are trading at such a low p/b ratio. Surely if most of their debt is invested as short guilts / treasuries there would not be such a wide discrepancy in p/b ratio.

[gary1966] 03/4/2020 16:35

I am fed up of the attack on dividends and the plight of people that are totally reliant on their investment income to live off. There has been no attempt to support people by the government that are in this situation. Everybody else whose income has been impacted has been covered by the furlough arrangements or other handouts and means of support. I can see no reason why it should be different for those reliant on dividends. I have started a petition and if you feel as strongly as I do and wish to sign it, it would be greatly appreciated. If you can forward it to others that would also be appreciated and post on other boards that you own shares in.



Thanks

Gary

[cjac39] 03/4/2020 16:28

DG of the ABI put out his normal weekly note including the following para:

"The PRA’s letter on Tuesday night demanded insurance and long-term savings boards consider carefully dividend and variable remuneration issues but the approach was markedly different from that taken with the banks. This is deliberate - the PRA does recognise some of the differences (not least the heavy reliance of many income funds on insurer dividends) and did not consider it appropriate to treat banks and insurers the same. This is to be welcomed. But being given a choice doesn’t make exercising that discretion any easier and boards need to prepare themselves for considerable scrutiny of the decisions they make in the coming weeks."

the insurers are not going bust and any suggestion they are is ridiculous. they already stress for the worst case in their credit books including the full outcome of the depression in the 30s and 08 and hold capital on top of that. you could have argued in 08/09 they were bust as they all held enormous volumes of bank subdebt (which is partly why they rescued subdebt). however matching adjustment rules mean you cannot hold any of that anymore and therefore their credit books are very clean and diversified. also the capital rules are very punitive to holding high yield so they have very limited exposures there. the Aviva capital scenarios are instructive - they include a stress of a full letter rating on 20% of their bonds it reduces their solvency by 4%. that's a 3 notch downgrade of 20% of their credit portfolio.

hold tight as it could get worse as the US loses control of the virus but do not sell the insurers would be my view

[uppompeii] 03/4/2020 16:23

Let's call it a recovery share....

[coxsmn] 03/4/2020 16:19

Remember Buy low, sell high

[whatsup32] 03/4/2020 16:16

I thought of unloading 5% of my holding today but then decided to hold hoping for a bounce Monday . We may be in for the a long haul and depression if this goes on for say 6 months more.
I still have no clear idea of Aviva’s exposure to virus related claims and company of no help in clear guidance

[spud] 03/4/2020 16:07

It's all turning very political.

I say they won't cut.

spud

[bothdavis] 03/4/2020 16:05

I obviously didn't get the email saying, Aviva, Legal and general and Phoenix are all going bust!!

Needless to say I hae all three!!


Sit tight, take any dividends, reinvest, sit tight......

[actybod] 03/4/2020 15:41

Didn't saying anything about dividends. Just said strong. 1 in 200 year event stress tests.

[essentialinvestor] 03/4/2020 15:10

SLA is not an insurance company.

[scrwal] 03/4/2020 15:05

If SLA are paying their div then AV should have zero problems paying theirs as the cover is far superior.

[cool hand kev] 03/4/2020 14:33

mildred570 Thanks but I'm not a follower

[eurofox] 03/4/2020 14:04

added at 232.6

[js1807] 03/4/2020 14:01

Hello. The CFO was on CNBC earlier in the week saying the dividend would be paid. It would be pretty irresponsible to cancel it after only confirming it on Tuesday morning. If I remember rightly, said cash flow was strong.