Aviva Share Discussion Threads

[fenners66] 06/3/2024 20:55

It could mean upwards of 2.5bn a year invested extra(?) in UK shares 500k investing 5k each

Can't harm

[1robbob] 06/3/2024 20:16

The new ISA allowance for investment in UK Companies will make no difference whatsoever to the popularity of the UK Market. Also the Admin could be nightmare

[cjac39] 06/3/2024 19:52

Generali rumours? Even without id take the other side tradeJ

[tradejunkie2] 06/3/2024 19:10

I expect it to tank, the ex-dividend will take it back to low 400s. See you girls down there.

[waterloo01] 06/3/2024 18:57

Results tomorrow. They should read well.....

[tourist2020] 06/3/2024 16:18

BUYBACKS - If Amanda can keep finding acquisitions with an IRR of high teens in a high interest rate environment then i won´t miind if she keeps the cash in-house .... she will probably invest it more wisely than me!

[muscletrade] 06/3/2024 15:24

Shares in Aviva PLC (LSE:AV.) have jumped around 2% since it revealed it would be returning to the Lloyd's insurance market on Monday.

Investors will now be hoping that results on Thursday can stimulate more growth in the share price.

Through acquiring Probitas for a £242 million consideration, Aviva will acquire its fully integrated Lloyd's platform, encompassing its corporate member, managing agent, international distribution entities and tenancy rights to Syndicate 1492.

Lloyd’s of London, also known as the ‘Lloyd’s market’, is a syndicate of insurers and reinsurers that underwrite risk on complex insurance products.

“Overall the acquisition is relatively small and is not a complete surprise… but provides an alternative distribution opportunity for capital-light general insurance growth and a high-teens IRR,” said analysts at Jefferies.

Aviva’s management has already guided for operating profits (implied £1.42-1.45bn) for full-year 2023 but the actual number might be nearer the bottom than the top given the dismal weather in Britain this winter.

Analysts expect any blow on the weather claims front to be softened by more cash handouts from the insurer with more than £6 billion over time being suggested by one broker.

An internal cash generation target of over £1.6bn by 2026 might also be revised as might the planned £750 million of cost savings currently underway.

“With the Solvency II ratio at a robust 206% (above Aviva's 180% target) and a larger capital base, the company arguably now has more firepower to fund special capital returns," said Jefferies.

“As a result, we lift our share buyback assumption from £330m in 2023 to £350m with future buybacks to rise in £50m increments annually thereafter (FY24: £400m, FY25: £450m).”

[smurfy2001] 06/3/2024 15:18

Even if stamp duty was abolished in the ISA, would have been a huge.

[spud] 06/3/2024 15:10

British ISA - A step in the right direction, but imo should have been a minimum of +£10k plus the abolition of the ridiculous Stamp Duty in order to make the UK Market more competitive.

spud

[tuftymatt] 06/3/2024 14:07

I agree that has certainly got something to do with the increase now.

Good luck all 👍🏻

[huncher] 06/3/2024 14:05

Its designed to help get Nat West away.

[louis brandeis] 06/3/2024 13:58

It's an additional £5K allowance over the standard. Simply who has that sort of money to save?

Just an empty offering IMO.

[unastubbs] 06/3/2024 13:51

Louis I don't share your view. I'm delighted by the announcement.

[louis brandeis] 06/3/2024 13:49

Great British ISA.

Invest in UK stocks so I can claim tax relief on my - most likely - losses!

LOL!

UK to be the next Silicon Valley????


COMPLETELY DELUDED GOVERNMENT! HEllO? ANYONE AT HOME? CUCKOO! CUCKOO!

[dr biotech] 06/3/2024 13:16

It'll be interesting to see how that works. Does it have to be UK listed or based in the UK - and if I sell, does it have to be reinvested in the UK. Guess details will come out later. I doubt it will make a big difference though, the average person can't save £25k a year.

[smurfy2001] 06/3/2024 13:08

Introduction of new British ISA, allowing additional £5,000 investments in UK equity to be made each year, with tax advantages of other ISAs;

[pete160] 06/3/2024 12:25

On the one hand, if Av announces further strategic divestments and /or returns to shareholders (not already factored into the SP) that would be good news, but if le Blanc were to announce her leaving /retirement - even in a year or so time, that might take a couple % off in the near term?

[tornado12] 06/3/2024 12:03

Looking forward to AV results tomorrow, expected a good performance here GLA

[1robbob] 06/3/2024 11:23

I suspect that AV is about to become the preferred Insurance Stock of the Market

[muscletrade] 06/3/2024 10:15

L&G prepares for strategic revamp after profit shortfall
March 06, 2024 at 08:42 am
Share
(Alliance News) - Legal & General Group PLC's new chief executive on Wednesday flagged a fresh start for the insurer after operating profit in 2023 fell short of market estimates.

The London-based insurer and asset manager reported flat operating profit in 2023 of GBP1.67 billion compared to GBP1.66 billion in 2022. The was below consensus of GBP1.80 billion.

Citi analyst Andrew Baker said: "We expect some weakness today on the lower operating result in a challenging operating environment."

Shares in L&G were down 2.8% to 238.50 pence in early exchanges in London on Wednesday. The wider FTSE 100 index was up 0.2%.

Pretax profit tumbled 91% to GBP76 million from GBP868 million and earnings per share declined by 43% to 7.35 pence from 12.84p.

L&G reported solvency II capital generation of GBP1.82 billion, little changed from GBP1.81 billion in 2022, and raised the dividend by 5.0%, as expected, to 20.34 pence from 19.37p.

L&G reiterated its intention to raise the dividend by 5% again in 2024.

Net surplus generation was GBP1.38 billion, down from GBP1.45 billion, reflecting the impact of higher volumes of pension risk transfer business.

Chief Executive Antonio Simoes, who joined L&G in January, said now was time to "take a fresh perspective, build on our track record and set out a vision for profitable and sustainable growth".

Simoes had been Banco Santander SA's regional head of Europe. He replaced Nigel Wilson, who retired after a decade in post.

Simoes said he would outline his strategy for L&G and plans at a capital markets event on June 12.

Simoes said L&G was on course to achieve its five-year targets, and had demonstrated resilience in "challenging markets" to achieve record new business volumes in pension risk transfer, UK annuities and US protection, increasing our store of future profit.

"Our international assets under management and alternative assets portfolio continue to grow, as does our position in the UK defined contribution pensions market," he added.

L&G said retail operating profit decreased by 2% to GBP408 million from GBP415 million, although insurance operating profit increased 22% to GBP436 million from GBP357 million.

Operating profit in L&G's retirement institutional arm increased by 10% to GBP886 million from GBP807 million, underpinned by the growing scale of back-book earnings and the consistent investment performance of our annuity portfolio.

LGRI reported record new business volumes, writing GBP13.72 billion of of global PRT compared to GBP9.54 billion in 2022, at a solvency II new business margin of 7.4%, in line with its long-term expectation.

By Jeremy Cutler, Alliance News reporter

[muscletrade] 06/3/2024 09:49

I don't like it when the enthusiasm of CEO opening remarks are often inversely proportional to the enthusiasm shown by everyone else.

[cjac39] 06/3/2024 09:01

quite a mixed bag for l&g. for AV:
margins much lower in BPA - surprising really given supply dynamics. but volumes up a bit in both BPA and retail
weaker protection in volumes and margins. lower ER sales which is natural given rates.
good flows into workplace
big hit on AUM from LDI as would be expected but i dont think this hits av much.

i dont like the way l&g bury bits of bad news either. but its forward DY of just under 9% at lower price today i think.

[muscletrade] 06/3/2024 08:35

Agreed not a disaster, just dreary.

[andyble] 06/3/2024 08:24

LG - the further investment variances relate to the unrealised mark to market impact of higher rates on the surplus assets in the annuity portfolio and the impact of the longevity assumption change, and although recognised in the operating profit this is just timing differences in the recognition of profits which average out to zero in the longer term. Simply, the headline lower operating profit is not a guide to performance, and the underlying cash flow and profit generation in the results is good, the boffins will recognise this when they do the analysis.