What All You Need to Know About the Aviva Plc (AV)

  • March 05, 2019 04:52 PM GMT
  • Team Kalkine
What All You Need to Know About the Aviva Plc (AV)

Business Overview

Aviva Plc (AV.L) is a London based life insurance, health insurance, general insurance and asset management company. They help around 33 million customers to defy uncertainties. It's areas of operations categorised into segments like the United Kingdom and Ireland, France, Italy, Spain and Others, Canada, Asia and Poland. The United Kingdom and Ireland segment include Life and General Insurance, France operations are long-term business and general insurance, its Italian business includes long-term business and general insurance, its Canadian operation include general insurance.[optin-monster-shortcode id="wxhmli4jjedneglg1trq"]

Segmental Contributions

Group's 48.13 per cent revenue comes from the United Kingdom and Ireland, 19.21 per cent from France, 16.74 per cent from Italy, Spain, and others, 7.98 per cent from Canada, 4.33 per cent from Asia and 2.08 of group's total revenue from Poland, as per FY17 audited annual report.

Recent Developments

  • On 13th Nov 2018, Aviva Raises USD876.2 million in Public Offering of 1.876% fixed rate bonds due 2027.
  • On 7th Nov 2018, Aviva Raise USD 855.93 million in public offering of 1.85% fixed rate senior notes due 2027.

Interim Financial Commentary

  • During H1FY18 Net Earned Premium stood at £13,785 million, up by 13.5% compared to the H1FY17 Net Earned Premium of £12,135 million, during the first half of 2018 insurer has continued to deliver attractive growth from its major segments.
  • During the first half of 2018, operating profit was down by 2% on account of weak numbers from Canadian motor insurance, lousy weather and divestments.

(Source: Company filings, LSE)


  • Under Life business, net contribution from new business increased by 21%. Profit grew to the tune of £169 million in H1FY18 from £140 million in H1FY17 under this segment.
  • The company announced an interim dividend of £9.25 pence, during the H1FY18, up 10% on a year-on-year basis.
  • Margins on new business reduced to 2.8% in H1FY18, compared to 3 per cent in H1FY17, primarily due to the decline in new business margin in the United Kingdom from 2.4% to 1.6% respectively.
  • Operating earnings per share grew 4% to 26.8 pence in H1FY18 compared to 25.8 pence in H1FY17.
  • Group’s IFRS post-tax profit stood at £376 million, down 47.4% from £716 million in H1FY17.
  • Aviva's normalised Combined Operating Ratio (COR), increased to 97.1% during H1FY18, compared to 96.0% in H1FY17, an increase was primarily driven by increased in Canada's COR to 101.9% vs 96.9% in H1FY17.
  • During the first half of FY18, Aviva had acquired a majority stake in the Wealthify Group Limited, for a total cash consideration of £17 million and it had sold its entire stake in the Avipop Assicurazioni S.p.A and Avipop Vita S.p.A to Banco BPM for a cash consideration of £232 million, the transaction above resulted in a total gain of £24 million.

Ratios Highlights (Annual Basis)


(Source: Thomson Reuters)

  • On the peer-on-peer basis, Aviva's loss ratio remained in line with the industry median of 65.9%, but on Y-o-Y basis company's loss had improved in FY17 to 65.3% compared to 69.2% in FY16.
  • Company’s combined ratio stood at 97.9% compared to the industry median of 94.6%, Although the company has improved upon it compared to a combined ratio of 101.8% in FY16. A combined ratio of more than 100 indicates the company had more losses in combination with expenses than earned premiums or booked losses from its operations.
  • Aviva’s expense ratio stood at 32.6% in FY17, whereas industry median was 28.7%.
  • At Leverage front, Aviva’s Asset-to-Equity for FY17 stood at 26.09% compared to the industry median of 10.20%, indicates that company had more equity contribution into its assets than compared to its peers operating within the same industry.

Share Price Performance

At the time of writing (as on 05-Mar-2019) before market closes, shares of Aviva Plc was quoting at GBp 438.45, up 3.3 points or 0.75% against its previous close. In last one-year shares of Aviva have reached a 52w High of GBp554.60 and a 52w Low of GBp 361.80. At the time of writing shares were trading 20.9% below its 52w high and 21.2% above its 52w low. One-year stock price return is negative 12.48%, but on a year-to-date basis stock is up by 17.8% respectively. Stock’s beta of 1.04 indicates that volatility in the stock price movement is in-line with the benchmark index. Stock’s 5d average daily volume is 21.32% above its 30d average daily volume.



The financial strength of the Aviva Plc reflected in the dividend, which has increased 10 per cent during the first half of FY18. Growth continuation from major markets and improvement in Canada will positively impact the top-line and bottom-line of the company. The market can keep a watch on Aviva Plc going ahead.



The website https://kalkinemedia.com/uk is a service of Kalkine Media Ltd (Kalkine Media), Company Number 12643132. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.


We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK