Aviva's Strategic Plan Makes Sense

Aviva's newly-announced strategic plan fits well with the ongoing de-risking process, says Morningstar's Vincent Lui

Vincent Lui, CFA 6 July, 2012 | 4:10PM
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Aviva (AV.) has announced a new strategic plan to strengthen its capital position and de-risk leverage by focusing on fewer business segments and markets. 

Overall, we think the strategic plan makes sense and fits well with the ongoing de-risking process. By eliminating non-core and underperforming businesses and focusing on businesses and markets that offer moderate growth but high returns, Aviva should be able to reduce its risk profit, strengthen its economic capital position and improve shareholders' returns over time.

This is an excerpt from the latest Morningstar Analyst Report on Aviva, available to Premium members. Sign in to read the full report. Not a Premium member? Get instant access when you take a free 14-day trial.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Aviva PLC456.20 GBX-0.11Rating

About Author

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

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