Aviva Appears to Be On the Right Track

It would appear that Aviva is executing on its goal of improved underwriting results, but we will reserve judgment until the firm provides complete financials early next year.

Jim Ryan 9 November, 2010 | 9:43AM
Facebook Twitter LinkedIn

Aviva (AV.) provided a third-quarter sales update which confirmed the firm's progress in increasing sales and attaining its goal of an internal rate of return of 12%. Unfortunately, Aviva, following the custom of European insurers, did not provide either an income statement or balance sheet in the third-quarter update so we are unable to analyse third-quarter results and our fair value estimate is unchanged. The firm did state that it is on track to achieve the best margins it has seen in the past five years and that it is executing on its announced goal of improved profitability. Aviva disclosed that its Lif

e and Pensions business grew 15% on the top line on a year-over-year basis and that general insurance (property-casualty) is operating at a 3% underwriting margin. Given the limited information available it would appear that Aviva is executing on its goal of improved underwriting results through increased sales coupled with cost savings, but we will reserve judgment until the firm provides complete financials early next year.

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 PLC463.40 GBX-0.43Rating

About Author

Jim Ryan  Jim Ryan is a senior analyst with Morningstar.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures