Skip to Content

Aviva PLC ADR AVVIY

Morningstar Rating
$11.58 +0.03 (0.26%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Aviva Has Streamlined and Rebalanced Its Portfolio With a Little More Deleveraging Left to Go

With the divestment of peripheral operations and geographies, Aviva has tilted its portfolio to a regional focus and more balance across product lines. International growth took the company increasingly away from general insurance. This is back to levels of contribution seen historically. Aviva is still a life and savings business predominantly, generating close to three quarters of its earnings from protection and health, equity release, annuities, and long-term savings. Health insurance is increasingly important, serving 4.5 million retail customers and around 3.3 million customers who get health insurance through their employment. With elevated national health service waitlists, there is increasing demand for health insurance. In protection, the company’s products are split equally between individual and group insurance. Using individual protection as a benchmark, 10% of sales are direct, 10% are sold without advice but intermediated, and protection sales are heavily intermediated. Aviva is looking to make individual protection increasingly automated. Health and protection make up around 10% of operating profit from U.K. and Ireland life and savings.

Price vs Fair Value

AVVIY is trading at a 12% discount.
Price
$11.58
Fair Value
$28.20
Uncertainty
Medium
1-Star Price
$75.44
5-Star Price
$1.37
Economic Moat
Dlxp
Capital Allocation
Nphqtsz

Bulls Say, Bears Say

Bulls

Aviva has rationalised its business portfolio to focus on three geographic regions.

Bears

Aviva is still more leveraged than most European multiline firms. Historical leverage has meant remaining debt is punitive.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if AVVIY is a good fit for your portfolio.

Trading Information

Previous Close Price
$11.55
Day Range
$11.4911.61
52-Week Range
$9.2511.61
Bid/Ask
$11.35 / $11.61
Market Cap
$15.86 Bil
Volume/Avg
64,644 / 52,078

Key Statistics

Price/Earnings (Normalized)
7.39
Price/Sales
1.04
Dividend Yield (Trailing)
6.77%
Dividend Yield (Forward)
6.77%
Total Yield
9.18%

Company Profile

Aviva is a multiline insurer that is listed on the London Stock Exchange. The company traces its roots back to the 17th century with the establishment of Hand-in-Hand. After the Great Fire of London, this mutual was formed to provide protection against fires. Hand-in-Hand was then acquired by Commercial Union in 1905. Over the years, Hand-in-Hand insured London landmarks such as London Bridge, the British Museum, and the Palace in Lambeth. The life insurance part of Aviva began in the early part of the 18th century with the establishment of Amicable, again a mutual society but this time to protect widows and children against the loss of life.
Sector
Financial Services
Industry
Insurance - Diversified
Stock Style Box
Large Value
Total Number of Employees
21,628

Competitors

Valuation

Metric
AVVIY
ALV
AXAHY
Price/Earnings (Normalized)
7.3911.399.75
Price/Book Value
1.271.751.47
Price/Sales
1.040.540.81
Price/Cash Flow
1.509.33
Price/Earnings
AVVIY
ALV
AXAHY

Financial Strength

Metric
AVVIY
ALV
AXAHY
Quick Ratio
Current Ratio
Interest Coverage
−1.049.6217.86
Quick Ratio
No chart available

Profitability

Metric
AVVIY
ALV
AXAHY
Return on Assets (Normalized)
0.60%1.27%1.16%
Return on Equity (Normalized)
16.14%23.06%16.49%
Return on Invested Capital (Normalized)
11.20%17.23%6.96%
Return on Assets
AVVIY
ALV
AXAHY
See how this stock stacks up to its competitors with Morningstar Investor

Insurance - Diversified Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
BRK.A
Berkshire Hathaway Inc Class AZrfv$905.5 Bil
BRK.B
Berkshire Hathaway Inc Class BRdmx$905.5 Bil
ALIZY
Allianz SE ADRMxbj$104.5 Bil
AXAHY
AXA SA ADRJhlpj$78.3 Bil
ZURVY
Zurich Insurance Group AG ADRMhppmn$75.7 Bil
AIG
American International Group IncJnh$48.6 Bil
SLF
Sun Life Financial IncSkfqx$32.3 Bil
AEG
Aegon Ltd ADRWzlr$10.3 Bil
AGESY
Ageas SA/ NV ADRRkvhh$8.0 Bil

Sponsor Center