Aviva Share Discussion Threads

[muscletrade] 12/5/2022 09:20

Good grief, the changes are supposed to free up excess capital for investment not increase reserve requirements.

[cjac39] 12/5/2022 09:01

1rob thats a complicated question as its unknown how they implement this. some people think its 60% reduction in risk margin and a 7bps deduction from matching adjustment yield. talking aviva the rm is 2.7bln (life and pensions) but the tmtp is 2.5bln. so the net of the two is slightly positive so most of the cut in risk margin falls to a reduced tmtp. in the MA portfolio a 7bps reduction in yield is a cost of 745mln so overall this would be bad vs capital and new assets would absorb more. as the tmtp runsoff the benefit grows as the risk margin benefit is still there in the main.

the biggest loser by some distance would be L&G as they have the largest MA across all insurers and it would cost them 1.7bln if they reduced their MA yield by 7bps....

[p0pper] 12/5/2022 08:36

Spud, agree entirely if that is all that was said, but sadly in todays VERY PC world we are not allowed to say much any more, so much for free speech.

[spcecks] 12/5/2022 08:29

p0pper,yes bought some this morning

[klotzak] 12/5/2022 07:49

Yes Pete, the thing is in any center of excellence there's a bad penny or two.ISIS/ ISIL has a significant proportion of doctors/ solicitors who should know better.It's like whack a mole, you'll never beat them.

[eurofox] 12/5/2022 07:32

p0pper, yes

[p0pper] 12/5/2022 07:11

Anyone buying at these levels?

[klotzak] 12/5/2022 07:10

Pete, check the Aviva site, it gets a mention on there.

[klotzak] 12/5/2022 07:09

Wrong word. I meant discount. The lower this share goes the better for the time being.Every share is going to pay out 30p. I want to buy as low as possible. Growth is a secondary for me, although I am sure it will rise over the next couple of years.

[1robbob] 12/5/2022 06:53

cjac

Are you saying that the net result would be a freeing up in the types of investment that can be made ie higher return Infrastucture investment with net no release of Capital

So an inceease in eps and possible increase in capital requirement.

If this is correct could you give us a steer on the potential impact for AV in both categories.

Thanks as ever

[1robbob] 12/5/2022 06:46

klotzac
...'but let’s just have that small pleasure of buying at at premium to the 76:100. Not too much to ask for!'

Premium to what?

If the share price post consolidation is less than 423.7p it will be at a discount to a 76% consolidation - ie 24% of 423.7 = 101.69 = cash return

[buzz24] 12/5/2022 06:25

Hello cjac37 all that sounds very technical but what does it mean for eg the share price of Aviva and dividends please?

[cjac39] 12/5/2022 06:08

general consensus seems to be that s2 reforms will release something like 10% of capital which can be used to invest in other assets and is agreed with pra. however this looks to be after tmtp runoff and therefore much of the cut in risk margin gets soaked up by tmtp reduction. so depending on size of tmtp relative to risk margin it could mean a capital increase until tmtp is meaningfully amortised. great freeing from s2. the pra really are idiots.

[peart] 12/5/2022 06:01

No, I wasn't there, but I'd be surprised if it was "fake news" as its published all over the place. I'd imagine the event was recorded also....

[pete160] 12/5/2022 05:44

Was anyone on this board actually at the event and witnessed what was actually said, and by how many shareholders, or are you all getting wound up by potential misreporting by the media!!?

[klotzak] 11/5/2022 20:16

The rise at the end of the trading day was when the US was up nicely. It has now tanked.These will be a great share to hold, but let's just have that small pleasure of buying at at premium to the 76:100. Not too much to ask for!

[smurfy2001] 11/5/2022 19:52

Already gone ex-divi payment is due this month 😉

[jubberjim] 11/5/2022 18:17

I wouldn t have been as crass as those at the AGM but it will not change my opinion
Ms Blanc is without integrity and let down countless small dividend investors with her initial actions (withheld declared dividend and cut ) There is and remains a stench which will never go away in my view.
The only thing holding this up is the promised dividend? after ex divi will crater

My honest opinion

[klotzak] 11/5/2022 13:33

Could do with this staying down until divi day. It's obvious it's around the bottom now

[smurfy2001] 11/5/2022 09:56

AB has more balls than any previous CEO.