Insurer Aviva Continues Revival

Aviva is well-positioned to grow in general insurance and traditional life business in its core markets, say analysts 

Vincent Lui, CFA 30 October, 2015 | 8:00AM
Facebook Twitter LinkedIn

Aviva’s (AV.) turnaround continued to produce positive results. With a more streamlined structure, as well as the benefits from the integration with Friends Life, the multiline insurer, while becoming more U.K.-centric and thus having more concentrated country risk, is well-positioned to grow in general insurance and traditional life business in its core markets. From a capital perspective, while the firm’s capital surplus fell 6% to £10.1 billion, we think that the slide was consistent with the increased market volatility seen in the quarter.

Aviva reported a 21% increase in new business sales in Asia

More importantly, management is on track to get approval from regulators for its internal model in December, getting the firm ready for the new Solvency II capital rules starting in 2016. We expect full-year premium to stay on track with our 2% projected growth.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Aviva PLC399.70 GBX0.43Rating

About Author

Vincent Lui, CFA  Vincent Lui, CFA is an equity analyst for Morningstar, covering life insurance companies.