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
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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.

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Securities Mentioned in Article

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

About Author

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