Aviva Share Discussion Threads

[123trev] 03/12/2020 10:25

Just making the point that Aviva seem to need little excuse if the statement has teeth or not.

[wba1] 03/12/2020 10:18

123Trev; this statement comes from Charlotte Gerken, the BoE director responsible for supervision of life companies. Unfortunately (just like her peer responsible for general insurer supervision) she has absolutely no real understanding of the sector she supervises, having been a banker at RBS and (for over 20 years) a regulator at the FSA followed by the BoE. Having had the experience of meeting with FSA staff on many occasions and having had to explain to them the most basic things about general insurance, I have absolutely no confidence in the ability of regulator staff (no matter how senior) to even understand the issues (never mind advise on policy) if they have never worked in the sector.

[123trev] 03/12/2020 10:15

The catalyst here is to sell the French unit and get rid of the golden ticket fiasco and the tremendous uncertainty surrounding it that’s what’s truly holding this back and the fact the board are very nervous and jumpy talking about it although explaining it as a non issue.It would be interesting to see that being bought under such a shadow but then again Aviva did and mr golden ticket himself is challenging any kind of sale for some reason!

[123trev] 03/12/2020 09:55

Bank of England tells insurers to be prudent regarding dividends because of future uncertainties that’s all we need Aviva don’t need much of an excuse to drop the dividends lol.

[carpingtris] 02/12/2020 21:27

S32 is doing share buybacks and it's working.. just my two pence worth..

[dr biotech] 02/12/2020 21:26

If they offered to buy 1:10 shares at 100p above the sp, or offered a 10p special and 10% buyback the result would be the same (tax may be different). You’d end up with 90% of your shares and have an extra 10p per share.

But it would be an administrative nightmare, sending out the paperwork to probably 100k shareholders who only have paper certs.

[1robbob] 02/12/2020 20:55

Not the same as a special dividend.
Tax is payable on dividends and only CGT (if payable!!) on a Tender Offer

Also Specisl Divs do not reduce number of shares, therefore cost of future divs

I will not respond re financially illiterate!!!

[whatsup32] 02/12/2020 20:55

Not sure if it’s even legal. Board have a duty to get best value for all shareholders (company) . Paying 20% more then market value is not best value for remaining shareholders.

If there are any....

[dr biotech] 02/12/2020 20:31

Tender offer at 400p. Same effectively the same as a special + buyback. You have to offer it to all shareholders on a pro rata basis, who would all accept. Would cause chaos amongst the army of financially illiterate holder who got shares through demutualisation.

[1robbob] 02/12/2020 20:11

Thanks fenners66
I just think it is an elegent, equitable and tax efficient way of returning cash to shareholders

[fenners66] 02/12/2020 20:05

1 robbob
You got 4 likes seems your audience has exceeded your expectations already

[spud] 02/12/2020 19:42

Don't mention the bleedin buyback word PLEASE!!!!spud

[eurofox] 02/12/2020 19:05

4 - worth much more when future dividends are considered versus measly savings rates

[1robbob] 02/12/2020 18:55

I know I am in an audience of one, BUT humour me

If the share price was 340p and you were offered the opportunity to sell 25% of your holding to the Company at 400p...what would you do?

1) Sell 25% of your holding and do nothing else
2) Sell 25% at 400p to the Company and buy back via the market between 340p and 400p
3) Another Buy/Sell strategy
or
4) Do nothing!!

My last post on this...I promise

[hhhold2] 02/12/2020 18:35

Any mention from the BOD of share buybacks & I will dump my entire holding, while its not in Eurofox's league its not staying invested with Aviva ,

the company have hinted of a special so that's what I'm hoping to see bear fruit,

either reward us or have it all back!

[whatsup32] 02/12/2020 18:26

As you said you’re an audience of one

[1robbob] 02/12/2020 18:00

>> Don’t think that is fair to shareholders who remain holding

It's a darn sight fairer that Share-buybacks

And better for the Company than Special Divs, as future dividend costs are reduced by the lower number of shares in issue

This is not a Market Operation its a direct transaction between the Company and each Shareholder

Every shareholder is given the right to Tender x% of their shareholding to the Company, with the guarantee that they will be successfull
Excess shares can be tendered by shareholders, but may not be successful if total amount tendered for is reached

I don't see what is unfair
The share price should rise for all - The NAV per share is increased - All shareholders are treated equally - Shareholders don't have to sell if they don't want to.

I appreciate its a left field idea - but worth consideration

[whatsup32] 02/12/2020 17:45

‘ premium to share price but a discount to NAV’

Don’t think that is fair to shareholders who remain holding

[1robbob] 02/12/2020 17:39

I find it hard to get excited about 'Specials'. In AVs case, they will be a return of Capital rather than Dividends.
......and there is always the chance that some spotty Director fancies the use of the dreaded Share Buyback!!!

I know I am in an audience of only one, but I would much prefer a Tender Offer to all shareholders to buyback shares at a premium to the share price but a discount to the NAV say 400p
...rather than Special Divs or Share Buybacks

[woodhawk] 02/12/2020 17:26

That's rather pessimistic; after this godawful year, I'm looking forward to an exciting year or so!! Three divis coming and then the prospect of some big specials on the horizon too...

[1robbob] 02/12/2020 17:19

We still have to come three events which should be positive for AV

1) Clearance for use of the Oxford/Asta Zeneca vaccine
2) A final Brexit deal (!!!??!!)
3) Announcement of sale of AV France

So hold on tight, should be an enjoyable/exciting month or so

[cjac39] 02/12/2020 17:11

No that was just a weird technical thing. The risk was already gone they just blocked the part vii. Never happened before so was newsworthy but doesn’t change value

[whatsup32] 02/12/2020 17:05

This may be good news fir Aviva

[whatsup32] 02/12/2020 16:58

Link is not allowing.
FT. Com

Court of appeal overturns £12Billion prudential ruling .

Allows pro to sell its life insurance valued at £12b

[woodhawk] 02/12/2020 16:47

Yes, it's a buy-the-dips ride into next year... hopefully. I'm an inveterate trader, but all too easy to be left standing in the current market, so playing it cautious right now.