Aviva Share Discussion Threads

[eurofox] 18/6/2020 17:10

tornado12 ... I am beginning to think that some long term large investors treat Aviva as a cash machine from which you can borrow some capital by selling shares, possibly for margin calls elsewhere, because it will always be around later and can be bought back at a later date and probably at a lower cost because it is inhabited by weak-kneed retail investors who will always ensure that is possible.

[tornado12] 18/6/2020 15:13

The issue I have with Aviva is their suspension of their dividend. This for me is their master stroke stab at the investor. This company has never performed on share price but a good pedigree on divi even through financial crisis. Like Shell the pedigree is blown out of the water and they will be in the same doldrums until they restart and show a clear strategy for investor returns. Unlike LGEN they are more than disappointing, but I have left my investment intact hoping for brighter future in next 2 yrs. this year is complete write-off !

[dbadvn] 18/6/2020 14:48

well done your sister. Put her in charge of the hospital !!

[wba1] 18/6/2020 14:03

Interested to see the posts from the last 2 days. I am not comfortable with the suggestions that Covid is just a similar scale problem to flu, but it has been appallingly handled by a bunch of politicians that could not run a bath. There seem to have been two distinct problems;

The modelling was poor, albeit that any models would be speculative with so many 'plug in' variables. My solution for looking at this in retrospect would be to ask Ben Goldacre to run this part of the review. His past record of books and articles, combined with his medical and epidemiological background show that he fears no one and has the necessary expertise.

The management of the problem has been quite awful, and the stench starts from the top. I have one example which illustrates this. My sister (who is also an SRN) manages a large nursing home. In one case in April she had to physically prevent an ambulance crew from entering her home with an elderly patient who had been discharged from hospital clearly still ill, either with Covid or something suspiciously like it. To try to send such a patient into a home was clear professional misconduct by the hospital staff, but they felt they had no choice as that is what they were told to do by managers....who were told to do it by the Department of Health.

The most regrettable aspect of this fiasco is that it has happened this year rather than last. We are now cursed with the bunch of shysters and incompetents in government for another 4 years. Goodness knows how much more damage they can do in that time. That is the biggest threat to both Aviva and the wider UK economy.

[whatsup32] 18/6/2020 12:40

Tulloch please leave , take a years pay take two but leave.

[linton5] 18/6/2020 10:26

Great work spud oh I meant 360s 😁for once Scotland has better weather today so out to enjoy as rare occurrence

[spud] 18/6/2020 10:19

AM Best Affirms Credit Ratings of Aviva plc and Its Subsidiaries
June 17, 2020 09:36 AM Eastern Daylight Time



LONDON--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” of the rated insurance subsidiaries of Aviva plc (United Kingdom). Concurrently, AM Best has affirmed the Long-Term ICR of “a-” of Aviva plc (Aviva), the group’s non-operating holding company. At the same time, AM Best has affirmed all Long-Term Issue Credit Ratings (Long-Term IRs) on debt instruments issued or guaranteed by Aviva. The outlook of these Credit Ratings (ratings) is stable. (See below for a complete listing of companies and ratings.)

The ratings reflect Aviva’s balance sheet strength, which AM Best categorises as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.

Consolidated risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), is assessed as strongest. However, there are fungibility constraints and most of the group’s capital continues to be located within its life subsidiaries.

AM Best’s assessment of risk-adjusted capitalisation for the group includes a significant contribution from economic capital embedded in long-term business and equity credit for hybrid borrowings. Despite the presence of these softer capital elements, AM Best expects Aviva’s risk-adjusted capitalisation to remain supportive of its rating level in the medium term.

Positive factors include the group’s capital-light new business strategy in the life segment (with the exception of expansion in U.K. bulk purchase annuities) and the revision of its external dividend policy whereby the group has moved away from a target pay-out ratio to a progressive dividend policy.

In AM Best’s opinion, Aviva’s asset base is of good credit quality and is able to withstand investment market volatility. In view of the COVID-19-related uncertainties, the group decided to suspend its final 2019 dividend payment, which supported its capital adequacy in the first quarter of 2020.

Aviva is obtaining strong returns from a mature profile of activities. Whilst AM Best’s five-year average return on capital for the company is 8.5% (2015-2019), removing intangible items from both profit and capital lifts the return to a more robust double-digit level.

Income from the group’s legacy U.K. with-profit and unit-linked non-pensions back books are declining; however, AM Best expects that longevity releases from the U.K. annuities back book, expansion of U.K. pension-related sales, including bulk annuities, growth in the international operations and a continued recovery in the Canadian non-life operations, should all support the group’s modest operating profit growth in the medium term.

Insurance losses arising from COVID-19-related disruption, such as in business interruption insurance, are expected to be moderated by the group’s reinsurance programme.

The diverse range of operations across life and non-life, and across territories is a positive rating factor for the group’s business profile. The group has leading market positions in the United Kingdom and Canada, significant operations in France, Italy, Ireland and Poland and growth opportunities in certain emerging markets.

The FSR of A (Excellent) and the Long-Term ICRs of “a+” have been affirmed with a stable outlook for the following subsidiaries of Aviva plc:

Aviva Insurance Limited
Aviva International Insurance Limited
Aviva Insurance Company of Canada
Elite Insurance Company
Traders General Insurance Company
Pilot Insurance Company
Scottish & York Insurance Company, Limited
S&Y Insurance Company
The following subordinated Long-Term IRs have been affirmed with a stable outlook:

Aviva plc—

— “bbb+” on GBP 450 million 6.625% callable subordinated notes, due 2041
— “bbb+” on GBP 800 million 6.125% perpetual subordinated notes
— “bbb+” on GBP 700 million 6.125% callable fixed rate reset subordinated bonds, due 2036
— “bbb+” on GBP 600 million 6.875% callable fixed rate subordinated notes, due 2058

The following direct capital instrument Long-Term IRs have been affirmed with a stable outlook:

Aviva plc—

— “bbb” on GBP 500 million 5.9021% direct capital instruments redeemable 2020 or thereafter

The following indicative Long-Term IRs on shelf securities have been affirmed with a stable outlook:

Aviva plc—

— “bbb+” on senior subordinated notes
— “bbb” on junior subordinated notes

spud

[linton5] 18/6/2020 05:10

No doubt about it sir 🤔

[hhhold2] 17/6/2020 19:11

This should see 260p again at some point

[dalep716] 17/6/2020 15:53

You are clearly reading the wrong books. You need to swot up on mumbo jumbo, not the less renowned jumbo jumbo, in fact I think they wrote a song about that.

[linton5] 17/6/2020 15:36

A few are great entries in last 10 mins arw, pfg

[eurofox] 17/6/2020 15:35

kicking out a few stop-losses from the buy-high sell-low brigade

[ftime] 17/6/2020 15:33

Getting absolutely hammered here today, worst in the sector, anyone have any ideas why?

[eurofox] 17/6/2020 14:34

What is real is triple witching options expiry coming up on Friday, so hopefully a bit more volatility to trade

[linton5] 17/6/2020 14:27

So what's your prediction o wise one

[salver2] 17/6/2020 14:15

Gaps what a lot of rubbish - I’ve been a city trader for 30 years and most of this technical jumbo jumbo is useless - now what did my tea leaves say

[gary1966] 17/6/2020 13:16

One gap filled today but two lower down at 262.20 and 239.50, will be interesting to see if they get filled as well.

[hodhasharon] 17/6/2020 12:56

Take your profits if you have any.

"Global oil prices slipped back this morning on rising fears over a second wave of coronavirus infections after an outbreak in Beijing."

[leedslad001] 17/6/2020 12:30

Takeover needed or board sacked

[uppompeii] 17/6/2020 10:49

The board would call heads tails

[dalep716] 17/6/2020 08:58

May I suggest CAML and RRE.

[eurofox] 17/6/2020 08:55

I can assure you that being charged to have my money in the bank will force more into risk assets. I am, in spite of pouring money into Aviva, still sitting on 85% cash and would definitely move more into equities that have dividend potential, strong balance sheets and sustainable cash flows.