Aviva Share Discussion Threads

[whatsup32] 19/2/2021 13:23

Let’s not talk GSK :)
Bought Monday 12.84

[eurofox] 19/2/2021 11:49

nice one spud - GSK also at interesting prices

[spud] 19/2/2021 11:47

Aviva moves into savings market with Raisin



UK insurance and pensions house Aviva is moving in to the cash savings market through a tie up with deposit platform Raisin.

The new Aviva Save platform offers the firm's 15 million customers in the UK a selection of fixed-term savings accounts with competitive rates. Savers can pick and mix offers from a range of banks and manage them all fully digital under one roof on the Aviva Save platform.

The launch follows The Bank of England’s Monetary Policy Report in February outlining that “households have accumulated an excess stock of savings of £125 billion” throughout the pandemic, equating to an average of £5,000 per household.

Roger Marsden, managing director, retail savings and retirement at Aviva, comments: “Although we recognise that not everyone will have the luxury of extra cash at this time, those who do will want their money to work as hard as possible.

“Whilst many savers may be frustrated with the low returns they’ve received on their savings during lockdown, the effort involved in moving their money around is often a barrier to them and stops them doing anything at all. This can lead to a general apathy amongst savers to switch, despite there often being more competitive rates available. Aviva Save will address this by offering customers a range of accounts and rates over time, so they can manage their finances and switch between accounts easily.

Aviva is the latest investment giant to enter the UK cash savings market through the Raisin Savings as a Service offering, following the launch of Willis Owen and AJ Bell late in 2020.

spud

[father jack1] 19/2/2021 10:06

A 50:50 split between buybacks and special dividends would be acceptable....although buying back when they were £3 a share would have been much smarter.

[chinese investor] 19/2/2021 10:06

25p to 390p !

[davebowler] 19/2/2021 09:29

..and IntegraFin is at 30 times P/E.

[davebowler] 19/2/2021 09:26

In my opinion Aviva ought to spin off its Sipp/ ISA platform. For example AJ Bell sells at 45 times Price to Earnings compared to Aviva's 6 times.

[spookies] 19/2/2021 09:21

I am sure most PI's like myself would rather have a dividend over a share buy back. That way I can choose what to do with my money. There seems to be a trend at the moment for buybacks.

[devonbeachbum] 18/2/2021 22:04

The Barclays Board is an interesting read right now with the announcement of buy-backs. The sentiment is not good and the share price tanked.

[whatsup32] 18/2/2021 21:28

Two weeks to results . Hopefully updates on all those companies up for sale , preferably with bid prices

[spud] 18/2/2021 21:05

How any buyback can be spun as returning capital to shareholders is a complete mystery to me. To say I'm against is an understatement!spud

[wskill] 18/2/2021 20:25

Unfortunately it will be done over some years this buyback lots of time for share price manipulation great fun for all except us poor shareholders who have watched incompetent Aviva boards of directors destroy value while the city boys laughed at them selling them the wonderful Friends Provident at an eye watering price billions of pounds 5.6 billion they seem to have sold it recently for a few hundred million ,this was in 2014 and today the whole of Aviva is worth 14 billion have they not done well.

Please just let’s have a dividend they management have proved they are incompetent over any years let’s not give them more money to waste .

[1robbob] 18/2/2021 20:04

Dr Biotech
Let's examine....'£3.5bn of BuyBacks'

£3.5bn at say £4 per share is 875m shares
875m shares = 20%+ of total share capital !!!!
Current daily share turnover circa 8m so say 4m Buys and 4m Sales
So the purchase of 875m shares would take 220 days entire daily turnover
If 20% of daily turnover ie 800k shares per day. It will take circa 3 years!!!

No way does the maths work out, both in terms of the % of daily Turnover and
the % of the total market cap

Even if there is to be a BuyBack, significant Special Dividend(s) are inevitable

Rather than a BuyBack, I still want to promote a Tender Offer to ALL shareholders at a premium price to the market price but lower than the NAV. This would be equitable to all shareholders and increase the NAV on the remaining shares

[dr biotech] 18/2/2021 18:58

May explain today’s strength. Dreaded buyback rears its head though.


BUZZ – Aviva: Citigroup finds disposals timeline compelling, upgrades
18 Feb 2021 09:01
* Citigroup upgrades shares of British insurer to "buy" from "neutral"; bumps PT to 420p from 346p
* Brokerage says disposals are moving at pace and "it is increasingly looking like there could be 6.4 bln pounds of cash proceeds by the end of 2021"
* Given AV's leverage, holding cash and Solvency II ratio constraints, brokerage estimates that there is room for c. 3.5 bln pounds in buybacks
* "We increase our TP reflecting 1) increased confidence in timely disposals, 2) an acceleration of capital deployment, and 3) re-rating of UK life peers over the past 3 months" -
Citigroup
* 12 brokerages rate the stock "buy" or higher, 8 "hold"; their median PT is 386.50p
* AV has tumbled 22.3% YTD, compared with the UK blue-chip index's 14.3% fall

[devonbeachbum] 18/2/2021 10:55

Thanks again for info MT. That's where I was going with my initial comment. The AB plan of what's happening to all that excess capital, to increase shareholder value. All to be revealed..

[muscletrade] 18/2/2021 10:40

I should point out error to previous post...sales proceeds 8 Bln. The 8Bln more realistically includes sales proceeds plus excess capital Aviva already has plus further reduction in capital requirements going forward.

[muscletrade] 18/2/2021 10:32

@Devon, There has been considerable discussion on here for some time on sale proceeds, valuation, return of excess capital etc etc and I would point you backwards to the posts on here at the end of November last year for more detailed analysis, some by myself but more importantly by insurance experts wba1 and cjack19.

Nothing ha changed in the interim to effect that analysis except that the sale process has progressed.
Of the sales proceeds, lets say 8Bln(it could be less...say 7Bln) we know that 3Bln will be used to reduce debt(this process has already started). Some of the remaining 5bln will be used to invest in Aviva Core to produce growth. Quite how much is invested for growth we don't know yet. For arguments sake lets say 2Bln. That still leaves Excess capital of 3Bln(Roughly £1 per share)to be returned to shareholders, methodology to be advised.

Obviously there is some execution risk that the sales process will not go exactly as planned and some of them may not happen at all but a good chunk already has and in any event a hard valuation has now been put on those businesses up for disposal(eg France) and even if that sale does not take place the valuation is still there.

Hope this helps.

[eurofox] 18/2/2021 10:18

thanks p0pper

[p0pper] 18/2/2021 10:08

CITIGROUP RAISES AVIVA TO 'BUY' ('NEUTRAL') - TARGET 420 (346) PENCE

[devonbeachbum] 18/2/2021 10:02

Interesting stuff, thanks MT. That's a lot of cheddar, 8 Bn. I know 'buy back' are hated words here, but they could make a serious dent in their market capitalization should they choose. Wondering how much it would take for it to be actually be effective, or have I missed that in previous discussions? Anyways, rebound or policy change, the trend is still definitely upwards. Happy to sit back, smile, and do nothing!

[muscletrade] 18/2/2021 09:43

@Devon, yes you are correct of course, there is a reflation element going on as well as policy change. Having said that L&G up approx 30% during same period, so Aviva strongly outperforming...and of course still a bargain. It is worth reminding ourselves that if sales proceeds and pre existing excess capital add up to 8Bln that is worth 203P per share(in cash). That values Aviva core valued at a "whopping" 162p based on current share price of 365P.

That would mean the Core dividend of 21p (which is set to increase and is very safe) would represent a yield of 13%. Aviva Core should be at least 450P(in my view)so still a long way to go. (DYOR).

[devonbeachbum] 18/2/2021 09:22

Lol, C'mon MT. In all likelihood that's market rebound to pre pandemic levels. Loving the upswing, but how can you differentiate between rebound and policy change? I'd say that's impossible as of now. Open to thoughts of others tho.

[muscletrade] 18/2/2021 08:55

@devon "While it's way too early to say the AB plan is working, it has definitely generated interest".

Yes, the share price has only increased about 50% since the Aviva management presentation in November :)

[devonbeachbum] 18/2/2021 08:26

It's got to be hasn't it? So far today, FTSE down, L&G down, Aviva up again. While it's way too early to say the AB plan is working, it has definitely generated interest.