Aviva (AV.)

[Dod101]

I have been in and out of Aviva a few times over the years, managed to make a dollar in the early 2000s when I was trying to trade cheap shares. Then a few years later when bought it for income it came unstuck and spent about a decade whipsawing the dividend every 3 or 4 years.
I still have a bit and the income has been moving in the right direction again albeit from a lower base. It has recovered to above pre covid levels now and I would be happy if that trend continued. A takeover is always a frustration as it sometimes leaves me with a share I hadn't picked or at the least a corporate action to decide about.

I do not hold Avia but if there is a decent premium in the current climate I do not see why a takeover would be a frustration,. Not half as frustrating as the current market where it takes two steps forward and three back.

Dod

[scrumpyjack]

I have held Aviva for far too long due to inertia and the repeated hope that 'this time' management would sort it out. Meanwhile over the last 20 or so years the SP has fallen from over 1200p, and the divi has been regularly cut (about 44p back then as I recall).

It does now seem at last that Amanda Blanc has faced up to its structural problems, got rid of a lot of the dross, and simplified things. It now has a lot of spare capital and more can apparently be realised, so it may be attractive to suitors.

I would be happy to take the mooted 600p. I might put some back into LGEN which seems very lowly rated at present but has always been a steady performer.

[flyer61]

Hah! bought yesterday....CEO has done a good job sorting it out. Doesn't need to be given away.

[idpickering]

Investor and Analyst briefing on Wealth Business.

Aviva plc ("Aviva" or the "Group") is today hosting an 'In Focus' investor and analyst briefing on its wealth business. The event, which commences at 10:00am (GMT), will be hosted by Amanda Blanc, Group CEO, and presented by Doug Brown, CEO, Insurance, Wealth & Retirement, and Michele Golunska, MD Wealth & Advice.

https://www.investegate.co.uk/announcem ... ss/7820271

Ian (I hold).

[csearle]

Moderator Message:
Discussion of Aviva moved here. - Chris

[idpickering]

Provisional 2024 Financial Calendar

Please note that the dates below are provisional and may be subject to change.

https://www.investegate.co.uk/announcem ... ar/7882872

Ian (I hold).

[idpickering]

Aviva plc Q3 2023 Trading Update.

Continued capital-light growth momentum

• General Insurance gross written premiums (GWP) up 13% at constant currency to £8.0bn. UK&I GWP up 15% and Canadian GWP up 11% at constant currency, both driven by strong rate, new business volumes and retention.

• Group undiscounted combined operating ratio (COR) was 96.3% (9M224: 94.2%), reflecting the impact of Q3 wildfires and other adverse weather in Canada, offset by continued rate increases and disciplined underwriting. On a discounted basis the Group COR was 92.5% (9M224: 93.1%).

• Protection & Health sales2, were up 23% with strong growth in Individual Protection, and in Health which was supported by higher corporate new business.

• Wealth net flows of £6.4bn represented 6%3 of opening assets under management, but were 9% lower than 9M22 due to the impact of the challenging market volatility on Platform. Workplace net flows were up 26% to £5.1bn (9M22: £4.1bn) driven by strong new business and the impact of wage inflation.

• Retirement sales2, were up 2% with higher BPA and Individual Annuity volumes. Year-to-date BPA volumes are
c.£5.5bn as at the date of this update.

• Q3 YTD baseline controllable costs5 of £2.0bn were down 1% versus 9M22. This reflects our strong focus on cost efficiency in an inflationary environment. We remain on track to deliver our £750m cost reduction target this year, a year earlier than planned.

https://www.investegate.co.uk/announcem ... te/7884400

Ian (I hold).

[idpickering]

Aviva to acquire Canadian vehicle replacement insurance business, Optiom.

Aviva plc ("Aviva") today announces the acquisition of Optiom O2 Holdings Inc ("Optiom") from Novacap and other minority shareholders for consideration of c.£100m1 (c.CAD$170m). Optiom, which operates as a managing general agent ("MGA"), is a leading provider of vehicle replacement insurance in Canada and offers flexible payment options to customers.

The acquisition expands Aviva's capital-light businesses, which make up over half of Aviva's portfolio, and grows Aviva Canada's presence in a profitable segment of the Canadian insurance market. As an existing underwriting capacity provider for Optiom, the transaction provides an opportunity for Aviva Canada to increase its access to an attractive line of business, while securing a stable, growing stream of distribution income. Optiom's strong distribution relationships will allow Aviva Canada to reach additional customers, who will receive best in class service alongside existing Aviva Canada customers.

https://www.investegate.co.uk/announcem ... om/7903641

Ian (I hold AV.).

[monabri]

With reference to September's announcement re sale of Singlife:

Aviva to exit Singlife joint venture.

· Aviva to exit Singlife joint venture for total consideration of £0.8 billion, including sale of debt instruments1,2,3

· Transaction further simplifies the group's geographic footprint and supports the focus on capital-light business units

Aviva plc ("Aviva") today announces that it has agreed to sell its 25.9% stake in Singapore Life Holdings Pte Ltd ("Singlife"), together with two debt instruments, to Sumitomo Life Insurance Company ("Sumitomo Life") for total consideration of £0.8 billion (SGD 1.4 billion) payable in cash at closing.1,2,3 Sumitomo Life will pay consideration of £0.5 billion (SGD 0.9 billion) for Aviva's equity stake and £0.3 billion (SGD 0.5 billion) for the two debt instruments. Sumitomo Life is currently a 23.2% shareholder in Singlife and sees Singapore as a key market within its overall Southeast Asia strategy.

Amanda Blanc, Group Chief Executive Officer of Aviva, said:

"This is a good outcome for Aviva. The transaction further simplifies the business and we are in a very strong position to build on our trading momentum in the UK, Ireland and Canada."

In 2022, Singlife contributed £17 million to Aviva's operating profit.4 The combined carrying value of the equity stake and debt holdings contributed £729 million to Aviva's IFRS 17 net asset value as at 30 June 2023. The transaction would have increased Aviva's Solvency II shareholder surplus as at 30 June 2023 by £0.4 billion and the Solvency II shareholder ratio by c.8 percentage points.1 It would have increased centre liquidity by £0.8 billion.1 The equity value represents a multiple of 2.2x Solvency II Unrestricted Tier 1 capital as at June 2023.

Aviva's exit from the Singlife joint venture represents a further step in the simplification of Aviva's footprint following the international disposal programme completed in 2021. It is also consistent with the group's ambition to focus on its capital-light business units. Aviva sold its majority stake in Aviva Singapore to a consortium led by Singlife in 2020.

The disposal proceeds will be considered alongside Aviva's existing capital management framework. Under this framework, any surplus capital is available for reinvestment in the business, bolt-on M&A, and/or additional returns to shareholders.

The transaction is subject to customary closing conditions, including regulatory approvals where required, and is expected to complete in Q4 2023.

https://www.investegate.co.uk/announcem ... al/7751786

Ian.

Update on September's announcement - additional proceeds

https://www.investegate.co.uk/announcement/rns/aviva--av./update-re-aviva-s-exit-of-singlife-joint-venture/7963778

"Aviva plc ("Aviva") today announces that it expects to receive approximately £80m1 (SGD 0.1 billion) of additional proceeds relating to the sale of Aviva's stake in Singapore Life Holdings Pte Ltd ("Singlife")"

"The revised total proceeds that Aviva expects to receive are approximately £930m1 (SGD 1.6 billion). The disposal proceeds will be considered alongside Aviva's existing capital management framework. Under this framework, any surplus capital is available for reinvestment in the business, bolt-on M&A, and/or additional returns to shareholders."

[idpickering]

Aviva completes acquisition of Optiom

Aviva plc ("Aviva") today announces that its Canadian business has completed the acquisition of Optiom O2 Holdings Inc ("Optiom") for consideration of c.£100m1 (c.CAD$170m). The acquisition supports Aviva's capital-light growth in the attractive Canadian market and strengthens Aviva Canada's specialty lines business and distribution capabilities.

The acquisition of Optiom was announced on 27 November 2023.

https://www.investegate.co.uk/announcem ... om/7977673

Ian (I hold AV.).

[idpickering]

Acquisition of Probitas

Aviva plc ("Aviva") today announces the acquisition of Probitas1 for consideration of £242 million2. The transaction includes the acquisition of Probitas's fully-integrated Lloyd's platform, encompassing its Corporate Member, Managing Agent, international distribution entities and tenancy rights to Syndicate 1492.

Amanda Blanc, Group Chief Executive Officer of Aviva, said:

"This acquisition is another step in our strategy to invest in Aviva's future profitable growth. Aviva's presence in the Lloyd's market opens up new opportunities to accelerate growth in our capital-light General Insurance business."

https://www.investegate.co.uk/announcem ... as/8067520

Ian (I hold AV.).

[idpickering]

Aviva plc 2023 Results Announcement

Amanda Blanc, Group Chief Executive Officer, said:
"We have made significant progress in 2023. Sales are up, costs are down, and operating profit is 9% higher. Our position as the UK's leading diversified insurer, with major businesses in Canada and Ireland, is clearly delivering. Today we have raised our total dividend by 8% to 33.4 pence and have now returned more than £9bn in capital and dividends to shareholders over the last three years.

"We have generated strong organic growth, especially in our capital-light businesses, which make up over half our portfolio. General insurance premiums increased by 13% on the back of strong performances in Canada and the UK. We are the number one provider of workplace pensions, and this business continues to thrive, with a record £6.9bn of net flows, boosted by winning 477 new schemes during the year. Our private health business is experiencing strong demand from businesses and individual customers and sales grew 41% in 2023. The higher interest rate environment boosted the bulk annuity market, where we secured excellent volumes of £5.5bn at strong margins.

"We are building a clear track record of strong and consistent performance. In each of the last three years we have grown sales, operating profit and our dividend. This momentum gives us increased confidence for Aviva's future, and so today we are announcing a new £300m share buyback programme, upgrading our dividend guidance to mid-single digit cash cost growth, and upgrading our Group financial targets.

"Aviva is financially strong. We are trading consistently well. Our prospects have never been better. We have leading businesses in growing markets, a fantastic brand, and we are investing substantially to make service better for our 19m customers. All the ingredients are in place to ensure Aviva continues to deliver an outstanding performance for our customers and our shareholders. I'm certain we will."

Strong 2023 results with continued profitable growth momentum

• Group operating profit‡,1 up 9% to £1,467m (20222: £1,350m).

• Solvency II operating own funds generation‡ (Solvency II OFG) up 12% to £1,729m (20223: £1,540m), which included a £208m initial benefit from two partnership extensions in IWR. Solvency II OFG excluding management actions and other up 28%.

• Solvency II operating capital generation‡ (Solvency II OCG) up 8% to £1,455m (20223: £1,352m).

• Solvency II return on equity‡ 14.7% (20223: 9.9%).

• Cash remittances‡ of £1,892m up 3% (2022: £1,845m).

• General Insurance premiums‡,5 up 13%6 to £10,888m (2022: £9,749m). Undiscounted COR‡ of 96.2% (20222: 95.2%) and discounted COR of 92.7% (2022: 94.3%).

• Insurance, Wealth & Retirement (IWR) operating value added‡ up 13% to £1,849m (2022: £1,635m).

• Baseline controllable costs‡,7 down 1% at £2,734m, more than offsetting inflation. Our continued focus on cost efficiency has enabled us to deliver our £750m cost reduction target a year early.

• IFRS profit for the year8 of £1,106m (20222: loss of £1,030m).

Dividend 22.3p, ex div 11 Apr 24, paid 23 May 24.

https://www.investegate.co.uk/announcem ... nt/8075143

Ian (I hold).

[monabri]

Finished up 1.6% on the day......just WHAT does a UK company have to do ?

[spiderbill]

Finished up 1.6% on the day......just WHAT does a UK company have to do ?

Move to a different stock market by the looks of it! Seems like a popular option these days.

I know they've been a bit of a serial underperformer for a good while but they do seem to have turned things around successfully and you'd think that sentiment might have improved a bit more than it has. Perhaps the news is that they're still a bargain at under 500p.

Spiderbill

[idpickering]

Aviva completes exit of Singlife joint venture

Aviva plc ("Aviva") today announces that it has completed the disposal of its shareholding in Singapore Life Holdings Pte Ltd ("Singlife"), together with two debt instruments, for total proceeds of £937m (SGD 1.6 billion).

The disposal of Aviva's shareholding in Singlife, together with the two debt instruments, was first announced on 13 September 2023.

https://www.investegate.co.uk/announcem ... re/8091592

Ian (I hold AV.).

[idpickering]

Notice Of 2024 Annual General Meeting and Ancillary Documents.

The Company announces that it has today made available to shareholders the Notice of 2024 Annual General Meeting and the Form of Proxy.

https://www.investegate.co.uk/announcem ... gm/8112217

Ian ( hold).

[idpickering]

Acquisition of AIG’s UK protection business.

Aviva plc ("Aviva") today announces that, following receipt of all necessary approvals, it has completed the acquisition of AIG Life Limited ("AIG Life UK") from Corebridge Financial, Inc, a quoted subsidiary of American International Group, Inc ("AIG"), for consideration of £453m.

The acquisition of AIG Life UK was first announced on 25 September 2023.

https://www.investegate.co.uk/announcem ... ss/8126964

Ian.

[idpickering]

Investor and analyst briefing on Health business.

Aviva plc ("Aviva" or the "Group") is today hosting an 'In Focus' investor and analyst briefing on its Health business. The event, which commences at 10:00am (BST), will be hosted by Charlotte Jones, Group CFO, and presented by Doug Brown, CEO, Insurance, Wealth & Retirement, and Steve Bridger, Managing Director, Health.

Health is a core component of Aviva's strategy as it accelerates growth in capital-light areas, grows customer numbers and serves more of their needs. It plays a critical role as part of Aviva's insurance proposition, because of the fundamental, and increasing, importance of health to all of Aviva's customers and to the whole UK population.

https://www.investegate.co.uk/announcem ... ss/8153179

Ian.