Aviva Share Discussion Threads

[eurofox] 01/7/2022 16:49

Hi cjac39 - you still in MNG big time?

[smurfy2001] 01/7/2022 12:28

Do we think Solvency II reforms (relaxing capital requirements) would spark growth in the Aviva share price?

[buzz24] 01/7/2022 11:51

The PRA are government appointed jobs and so why doesn't BJ get rid and replace them with others more receptive?

[cjac39] 01/7/2022 11:44

As ever the PRA are total idiots. Taking away the risk margin for most life insurers gets mostly offset by reduced tmtp whereas putting spread movements into fundamental spread hurts. S2 already pretty much doubled the capital under old icas regime and most insurers hold 60-80% on top. Buffers on buffers on buffers

[1robbob] 01/7/2022 11:33

From today's FT.com

Tensions are growing between Downing Street and UK regulators over Boris Johnson’s flagship post-Brexit reform of the insurance sector, which aims to unleash an “investment big bang” in British infrastructure.

The prime minister has told allies he is “getting impatient” over the pace of change to the so-called Solvency II rules and with what he believes are excessively cautious regulators. “He keeps asking why it isn’t happening,” said one.

Insurers have lobbied for years for the Solvency II regulatory regime to be amended, arguing it requires them to hold too much capital and is too restrictive in setting the parameters for which assets they can invest in.

Johnson has suggested insurance companies will embark on an “investment big bang” by putting billions of pounds into infrastructure, including green energy schemes, after the planned overhaul.

But the Bank of England’s Prudential Regulation Authority, which supervises insurers, is determined to ensure any easing of the regulatory burden does not create a risk to policyholders or to the stability of companies.

One senior government official said: “The PRA is being a bit of a dog in the manger over this.” Another said the PRA was “not being very transparent” at explaining its rationale for a more cautious regulatory regime.

The PRA said it “has been clear that it supports a major reform of Solvency II, including measures to promote investment in the economy, while providing an appropriate level of protection for policyholders”.

Johnson is determined to show some benefits of Brexit to offset the damage caused to Britain’s trade and investment performance since barriers were erected between the UK and the EU.

The Solvency II regulatory regime was introduced when the UK was part of the EU, and a government consultation on reform was published in April that involves changes to the law as well as an overhaul of regulation. The consultation closes in late July.

Discontent has been growing among insurance chiefs over the direction of the Solvency II shake-up.

Some fear the PRA’s proposed changes to the so-called matching adjustment, which feeds into the calculation of insurers’ long-term liabilities, will eliminate much of the benefit from a planned reduction in a key capital buffer.

Charlotte Gerken, executive director for insurance at the PRA, said in a speech last month that a 60 per cent cut in life insurers’ risk margin, an extra capital buffer brought in with Solvency II, would “only” be possible if a key part of the matching adjustment calculation “is also reformed to better reflect credit risk retained by life insurers”.

Chancellor Rishi Sunak held talks with insurers on Monday, where executives questioned the PRA’s proposed methodology on the matching adjustment, according to one person briefed on the meeting.
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The pace of UK reform has also been a sticking point for insurers, as the EU forges ahead with its own Solvency II overhaul.

Brussels issued its proposals last September, and EU member states have agreed a position, but the European parliament is still discussing the changes.

“There is a chance that we can beat them to the crunch but they are far ahead of us at the moment,” said one UK-based insurance executive.

The government will pave the way to changes to Solvency II in a financial services bill, to be brought forward in the autumn, with a view to enacting the legislation in the first half of next year.

The Treasury said: “We want to support our vibrant insurance sector to invest in this country, while continuing to ensure protection of policyholders.

“We’re working closely with the regulators and the industry to redesign the rules so they best suit our country’s needs.”

[whatsup32] 01/7/2022 10:14

Article in FT about insurance rules and watchdog. Sorry not able to link

[tuftymatt] 01/7/2022 09:03

I would go with that pete.
Problem is more about going into the break and coming out of it. Sell off maybe into it, no direction on the day itself then flat volume after due to many being on holiday leads to a view it's more of a problem overall than a positive.

[pete160] 01/7/2022 08:00

Not a scientific observation but the UK market generally seem to do better when the US computers are off for a day!

[tuftymatt] 01/7/2022 07:04

I looked at this for a top up yesterday at just under 400 but didn't act.
Not a concern about AV. long term just a short term concern on today / Monday as the US will be closed then for 04.07

Will keep an eye out today as buying at around that level helps my long term average anyway. Got to find positives where you can in this market right!!

[jubberjim] 30/6/2022 20:22

Have reached my % limit with Aviva in my share portfolio
Same with lgen mng and phnx


Will just have to sit back now await developments dividendseveryone can t come soon enough

Hoping for the best good luck

[smurfy2001] 30/6/2022 17:42

Managed to add a little more to my ISA holding using the cash l got back from Aviva. Anything to boost the income.

[eurofox] 30/6/2022 16:32

order didn't get filled

[p0pper] 30/6/2022 15:42

right or wrong just had a little top up

[eurofox] 30/6/2022 15:30

probably being helped out by margin calls from collapsing cryptos

[p0pper] 30/6/2022 15:28

you a buyer today eurofox?

[eurofox] 30/6/2022 15:24

that should have reamed the margin traders out

[rongetsrich] 29/6/2022 10:14

https://www.thisismoney.co.uk/money/markets/article-10958345/amp/Chancellor-talks-UK-insurers-seeks-ditch-EU-rules.html

[jubberjim] 29/6/2022 08:39

This is the only share in my portfolio that is holding its own

Dreadful market

[smurfy2001] 28/6/2022 20:37

We seem to have a red ticker must be bored 😂

[grahamburn] 28/6/2022 15:27

No..... been on their website for quite a while.

[wadders5] 28/6/2022 13:34

Are we still waiting for the CGT example from Aviva.

[smurfy2001] 28/6/2022 11:39

ECB to Activate First Line of Defense in Bond Market on Friday

Flexible PEPP operations can start as APP ends, Lagarde says

Officials are also working on a separate fragmentation tool

[warranty] 28/6/2022 10:45

1rob, it was the current board that sold off all the foreign businesses and the way they have handled the proceeds doesn’t seem to have produced any benefits for shareholders. I will continue to hold as I still believe AV is a good and solid dividend stock but I’m less convinced about the capital growth situation. Personally a buy out over £5 a share would suit me best.