Aviva Share Discussion Threads

[whatsup32] 27/9/2024 07:26

Nothing happening at Av
Wonder how floods Effected them . It doesn't look catastrophic.

[stevetmade1] 21/9/2024 12:22

https://uk.finance.yahoo.com/news/13-2024-aviva-share-price-165035807.html

[xtrmntr] 20/9/2024 17:57

Three is no doubt that insurance companies are nowadays one of the most important dividend shares for income.They are attractive not because of the volume of dividends – they rarely feature in the top 10 payers on that metric, and the 50 per cent cut flagged by Vodafone earlier this year is, on its own, bigger than the entire closely watched payout for Legal & General (LGEN).Interest instead stems from the relative cheapness of their shares. The attraction of inflation-beating yields is hard to match – of the top six highest yielders in the FTSE 100, four are insurance companies, according to FactSet data.The question is whether those high yields are truly reflective of the level of risk that shareholders take when buying the shares. As ever, some are safer than others. Aviva (AV.) is an interesting example of a popular high yielding insurance share that reflects one basic truth: it is the largest insurance company in the UK to have comprehensively gotten its house in order.What was once a sprawling group built up by a seemingly arbitrary series of bolt-on acquisitions has been slimmed down to focus on the UK, Ireland and Canada, with clear delineation between the life, motor and personal insurance lines.The company's current health is also driven by the fact that costs have been tightly controlled at the same time as demand for annuities has picked up significantly. Aviva will write £7bn-£8bn of bulk annuities business this year, as defined benefit pension schemes' funding levels improve, allowing companies to offload future liabilities to insurers and simplify their own operations.But the most important reason for Aviva's popularity with retail investors is that the current management, led by chief executive Amanda Blanc, has also kept its word to shareholders when it comes to payouts. After raising £7.5bn from business sales, the company paid out £4bn of capital to shareholders by the middle of 2022.Fulfilling this commitment is no guarantee that dividends will continue to grow over the next couple of years, but current forecasts are for dividend growth in "mid-single digits" this year, or 5 per cent in old money, with a 7 per cent growth rate forecast for the following period, according to predictions by broker Berenberg. That translates into a current dividend yield of around 7 per cent, rising to 8 per cent at a price-to-book value of just 1.3 times. One reason to be cautious is that Aviva's operating profit target of £2bn by 2026 could be quite punchy if premium rates start to moderate, in which case the annuities business would have to take up more of the slack. Currently, general insurance premiums are forecast to rise at around 9 per cent for next year. What might be needed to ensure the future health of the dividend is for Aviva to smooth out its free cash flow. This has been exceptionally lumpy in the recent past, partly because of asset sales, but it is notable that the company is forecast to book cumulative cash flow growth of 12 per cent over the next two years. This seems to underline the fact that simplifying the business and focusing on what the company does best will prove profitable for income investors.Dividend policy: Cash cost of the dividend to grow by mid-single digitsYield: 7.2 per centPayment: Semi-annually, in sterlingLast cut: 2020AlternativeLegal & General surprised the market earlier this summer – not via a 5 per cent increase in the dividend this year, topped up by share buybacks, but with forecasts that the two years through to 2027 would see a reduced 2 per cent annual increase, buybacks again substituted to try to make up the shortfall. It was the first substantive act from new chief executive António Simões and showed management's determination to improve LGEN's core operating profits. Income investors may not quibble too much about this change of direction given the forward dividend yield remains well above 9 per cent.

[adelwire2] 19/9/2024 11:45

572...nice

[1robbob] 18/9/2024 16:55

Dame Amanda must be sorely tempted to bid for LGEN and repeat her AV strategy one more time.

[skinny] 18/9/2024 09:13

FWIW :- Goldman Sachs starts Aviva with 'buy' - price target 572 pence

[1robbob] 17/9/2024 18:27

Can somebody give me an idea as to the basis on which Insurance Companies take BPA business

[gilesy911] 16/9/2024 08:13

Lots of news this weekUK Inflation Report and US Interest rates on Wednesday and UK Interest rate on Thursday

[marvin tpa] 10/9/2024 14:05

Brokers are effing useless but as Skinny says better positive than negative

In evaluating my pf, I'm comparing Aviva with LGEN, MNG and PHNX

Aviva has seen the greatest gain (ie less upside to come?) and has the lowest yield. Are there any good reasons to hold AV over the other three?

[skinny] 10/9/2024 12:09

Better than negative....

[adelwire2] 10/9/2024 12:01

Do positive share tips by brokers have any use at all?!? Thinking of the plethora of positive upgrades for Aviva and little change in the share prices.

[cwa1] 09/9/2024 07:15

Jefferies raise their Aviva PT from 525 to 550p, suggesting they are a BUY

[yump] 08/9/2024 22:48

Well its interesting that the Indian market didn’t get covered much as a good growth investment until it had risen significantly. But that is always the way. If there is any pattern to investing, the UK should get its turn. Even AIM stocks where the plentiful dross has plummeted, but the sound businesses have not plummeted as much.

[pj84] 08/9/2024 22:32

Thanks for pointing out the article cyberian:-

This snippet appears particularly relevant:-

"“Buy British,” Goldman Sachs enthused in a note to its clients this week. The FTSE 100 offers diversification away from tech-loaded US markets, analyst Sharon Bell wrote.

“We think there is a strong case for diversification into UK equities, which look inexpensive, offer high shareholder returns and — for the mid-caps — should benefit from a continued modest economic revival,” Bell said.

One big reason for the relative cheapness of UK markets, Bell noted, is that domestic investors have tended to shun their own market. UK pension funds allocate around 4 per cent of their assets to UK stocks, think-tank New Financial said in a report this week, down from over half 25 years ago — a stunning retreat."

[engelbert1969] 08/9/2024 22:23

Is it a full moon tonight...

[cyberian] 08/9/2024 21:12

For a more informed and balanced view of UK markets I suggest that one reads Katie Martin "The Long View" in this weekends FT. It gives me a more positive and constructive outlook in my view especially if one is holding Aviva, but not alone. There are some decent UK stocks that are extremely good value and I am sure that some other posters here will agree applying calm research and maintaining a balanced portfolio.

[hallucinogenix] 08/9/2024 20:40

Yeah - and i'm offended by being called a bigot for no reason whatsoever, apart from my political preference.

You know nothing about me, i have a political belief that is totally against Labour and you choose to call me out as a bigot - Do you understand the meaining of bigot ?

Do you know know the political party i vote for ?

Do you believe that if anyone who disagrees with your views is a bigot ?

I don't think you do - cause you invest and are slightly intelligent - so your making yourself look like a fool.

Again please leave me alone as i have done nothing to offend you -
Moderator ?

I have opinions that not everyone agrees with !

Anyone remember democracy and conflicting views without oddballs crying like a baby with blue hair - lets have a discussion - who knows i might be wrong

[yump] 08/9/2024 20:26

Lewy1970

I am shocked by your balanced post, which I feel goes against the rich history of advfn good/bad camp split posting ;-)

[hallucinogenix] 08/9/2024 19:40

@lewy1970


Can you please explain my 'EXTREME VIEWS', what is extreme about my views, is it because you don't agree - is that it ? and makes me exreme :)

This is quie funny and shows everyone what is happening


Please moderator protect me from this guy, i have done nothing wrong and he keeps on atacking me -

i'm just subtely trying to protect people from a massive loss, but understand the media manipulation and government influence on the market - i'm trying to be the good guy lol - never mind :)

Good luck :)

[hallucinogenix] 08/9/2024 19:28

Instead of insutling fellow user why not converse about differences - most real people want to make money - but i'm sceptical about some users on here who have political personal opportunities.

And push name calling to advance their political agenda

[lewy1970] 08/9/2024 19:24

Username is fine it was your views that are extreme. Plenty of places to vent your political views but this place is best kept for Aviva news.

There were plenty of way to talk about pre budget concerns but your approach and language was pretty extreme.

Sorry if my words offended you but let’s stick to Aviva here. We have divi to look forward too and a positive outlook - much better position than a few years ago.

[hallucinogenix] 08/9/2024 18:32

Damn, i can't wait :)

Imsults are the sign of panic - good luck who listen to me cause i'm not controlled by the media or any state controlled stuff

[hallucinogenix] 08/9/2024 18:12

@lewy1970
Wow because of a user name you assume that i on mushrooms - That is obnoxious please can you refrain from your views - i would explain the reason behind the name but feel you are so introverted that you probably wouldn't understand - again i don't want this to become a slanging match so please could the moderator step in a protect me from this attack - Thank you

I've done nothing to attack or inflict any sort of harm on any perosonal user - my intent was to advise with a disclaimer that it is just an opinion that any normal person can take or leave.

Why take offense at that ?