AVVIY Stock Recent News

British insurance multinational Aviva plc's full-year results were positively received by the market on Thursday, with shares adding 1.5% to a year-to-date high of 461.8p. Chief executive Dame Amanda Blanc used the strong results, which underscored better-than-expected operating profits of £1.47 billion, to tout the insurer's successes while nixing lingering rumours of international takeover interest.

Aviva lifted its operating profit target to around £2 billion by 2026 as it reported better-than-expected full-year results.

Aviva plc exceeded its operating profit target in 2023 with a 9% increase to £1.47 billion, up from £1.35 billion in 2022. Aviva's management had guided for operating profits between £1.42 billion and £1.45 billion but warned the actual number might be nearer the bottom than the top given the dismal weather in Britain this winter.

Aviva's return to Lloyd's of London through the acquisition of Probitas is in line with its medium-term strategy but still a bit of a surprise, said brokers. The insurer announced the deal yesterday, with the price a premium to listed Lloyd's peers but in line with the sub-sector, according to Jefferies, with an expected internal rate of return (IRR) in the high teens.

Aviva (LON: AV) share price has been one of the top performers in the FTSE 100 index. It was trading at 448.50p on Monday, a few points below its all-time high of 454.5p.

British insurer Aviva said on Monday it has re-entered the Lloyd's insurance market with a 242 million pound ($307 million) acquisition of insurance platform Probitas.

British insurance big cap Aviva plc is set to enter the Lloyd's insurance market with the acquisition of Probitas for a £242 million consideration. Referring to Lloyd's of London, the ‘Lloyd's market' is a syndicate of insurers and reinsurers that underwrite risk on complex insurance products.

Macro news edges back into the picture this week after the flood of company updates with attention mainly on the US monthly non-farms number of Friday. More hawkish comments coming out from the US Federal Reserve haven't stopped stock markets in the States hitting new highs, though most of this is tech-related.

Aviva's management has already guided for operating profits (implied £1.42-1.45bn) but the actual number might be nearer the bottom the top given the dismal weather in Britain this winter. Analysts expect any blow on the weather claims front to be softened by more cash handouts from the insurer with more than £6 billion over time being suggested by one broker.

Aviva has more cash to play with than the market thinks according to analysts at Jefferies, who have lifted its buyback forecasts to £350m for 2023. While falling interest rates reduce Aviva's Solvency II ratio, it will likely result in a larger own funds balance (in £m), adds the US bank.