Aviva Share Discussion Threads

[otemple3] 08/3/2018 15:41

Thanks Skinny, looks an over reaction to me but not brave enough to jump in...

[grahamburn] 08/3/2018 15:34

Presumably due to the comments in the results about buying back some of the preference shares.

[otemple3] 08/3/2018 15:31

Why are the prefs falling??

[edmundshaw] 08/3/2018 15:25

Ouch!!! But nope, not me, sorry speedy! :-)

[speedsgh] 08/3/2018 15:10

Don't suppose you hold any of their prefs (AV.A, AV.B, GACA, GACB)? That might wipe some of the smile off your face ;o)

[edmundshaw] 08/3/2018 14:56

I am in smug mode now, having bought some first thing at 495p in the face of institutional selling. Probably unbearable.

But no worries, I am sure something will come along soon enough to improve my social acceptability.

[villarich] 08/3/2018 14:33

Bloody hell we're blue!!

[edmundshaw] 08/3/2018 12:02

CB7, that is wrong. Ex dividend date is April 5th, as mentioned before.

[zho] 08/3/2018 11:40

Results being discussed at

[fangorn2] 08/3/2018 11:13

On the dip today post results...

Only comment I've found to explain such is this:

"JPM - Focus on miss in Canadian Life Insurance business"

[cordwainer] 08/3/2018 10:57

I thought by now AV. ought to be more popular as a relatively safe haven with a nice dividend.

[mo123] 08/3/2018 10:46

Richard Hunter, head of markets at interactive investor, commented: “The muted share price reaction to the results cannot detract from what is generally a sparkling set of numbers.”

He added: “Disappointments are few and far between, although committed bears may point to a slightly softer General Insurance operating profit, an uptick in operating expenses and a ‘disappointing”’ contribution from Canada.

“Nonetheless, overall Aviva has shown its strength in terms of growth, capital stability and an improved outlook statement.“

[cb7] 08/3/2018 10:46

Just to be clear the dividend record date is the 6/4, but the share will go xd on 4/4, so holders at the close of business on 3/4 will get the divi.

[cordwainer] 08/3/2018 10:12

5.5% yield for the past year + progressive dividend policy going forward + probable share buybacks.

[speedsgh] 08/3/2018 10:09

@CC2014 - All in good time, although I believe the company has previously stated that any capital returns are more likely to be via share buyback, which for me is less preferable.

I am unsure as to what they mean by 'liability management'? Anybody shed any light?

From today's results
"Our priorities for deployment remain unchanged. Our objective is to use surplus cash to deliver sustainable benefits to our shareholders. For 2018, we have outlined our intent to repay approximately £900 million of expensive hybrid debt, saving more than £60 million in annual pre-tax interest expense. We have allocated approximately £600 million for bolt-on M&A, which includes the €130 million already committed to the Friends First acquisition in Ireland. And we have indicated that in excess of £500 million will be used for capital returns, which may include liability management, share buy-back or special dividends."

[cc2014] 08/3/2018 09:45

Very disappointed this morning. I think some were hoping for a special dividend?

[edmundshaw] 08/3/2018 09:42

It's true Canada business is having a tough time, with COR 102.2%, but surely that will be fixed up over the next two years. Meanwhile the rest of the business is doing pretty well.

[churchill2] 08/3/2018 09:31

Apparently to the CEO on CNBC this morning results dragged down by Canadian operations. He quoted a figure of £200 million.

[speedsgh] 08/3/2018 09:04

Dividend Declaration -

On 7 March 2018, the Directors agreed a recommendation to shareholders of a final dividend of 19.0 pence per share on Aviva ordinary shares. Subject to shareholder approval at the 2018 Annual General Meeting, the final dividend for the year ending 31 December 2017 will be paid on 17 May 2018 to shareholders on the Register of Members at the close of business on the record date of 6 April 2018. Holders of Aviva American Depository Receipts (ADRs) will be paid the dividend approximately four business days after the payment to ordinary shareholders...

[enami] 08/3/2018 08:32

Yes strange to be down. I was just watching Bloomberg TV and they said maybe because JP Morgan worried about the "miss" in Canadian non-life business.

speedsgh - yes thanks I agree 5 April which makes it in this tax year for income. I though they usually made it XD for the next tax year.

[edmundshaw] 08/3/2018 08:29

Nice snippet from part I:

With our Solvency II cover ratio remaining above our working range, we have plans to reduce hybrid debt by a further £900 million in 2018 and will consider other opportunities to deploy surplus capital to strengthen our businesses and enhance long-term shareholder returns

[bg23] 08/3/2018 08:28

like you, I cannot see where the offer comes through and remain mystified as to their continued underperformance.

its evidently a sector out of fashion , which is a shame, bit its not ........as it allows us to continue to reinvest the dividends into an excellent business.

lgen also?

[edmundshaw] 08/3/2018 08:19

Well I cannot see why the share price dipped at open, I have added to an overweight position. 5%+ CAGR + 55-60% dividend rate would see a dividend in 2020 of around 35p. On a yield of 5% that would suggest a share price of 700p, or 40% upside, which is pretty appealing for a well-run elephant business...

[speedsgh] 08/3/2018 08:14

Dates for final dividend payment of 19.00p are on their website. Whilst they are still marked as 'subject to change', the payment date matches the date is the Final Results announcement. Going by previous form, the dividend dates will be confirmed via a separate rns later today alongside dates for the 8.75% prefs.



2017 final dividend record date* - 06 Apr 2018
2017 final dividend payment date* - 17 May 2018

Final dividend will therefore go XD on 5 April.