Skip to Content

Aviva PLC AV.

Morningstar Rating
GBX 496.60 +0.40 (0.08%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Aviva Earnings: Strong Operating Profit and Capital Generation Drive Upgraded Guidance for Dividend

Aviva reported a strong set of results for 2023, with operating profit up by 9% to GBP 1.467 billion. This sound financial performance was driven by good growth of general insurance premiums combined with adequate underwriting performance, decent protection and health sales, and net flows within the wealth management business. Looking forward, the company has upgraded its objectives and guidance to an operating profit target by 2026 of GBP 2.0 billion. Further, there is a GBP 1.8 billion 2026 target for own funds generation. This stacks up well against the GBP 1.729 billion achieved over 2023, a double-digit rise, and the GBP 1.5 billion target for 2024. The total dividend for 2023 is GBX 33.4 per share, a GBX 22.3 per share final, with guidance upgraded to mid-single-digit cash cost growth. A new share buyback was announced of GBP 300 million, with guidance for further regular capital returns in the future. The Group’s solvency ratio stood at 207% at the end of the year, after the two acquisitions. The recent announcement of the acquisition of Probitas builds on Aviva’s interest in continuing to develop its general insurance proposition, particularly in commercial and specialty lines of business. We maintain our fair value estimate and our no-moat rating.

Price vs Fair Value

AV. is trading at a 3% discount.
Price
GBX 495.00
Fair Value
GBX 532.00
Uncertainty
Medium
1-Star Price
GBX 286.10
5-Star Price
GBX 732.00
Economic Moat
Txzlh
Capital Allocation
Ncwfsbx

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 AV. is a good fit for your portfolio.

News

Trading Information

Previous Close Price
GBX 496.20
Day Range
GBX 491.60498.50
52-Week Range
GBX 366.00498.50
Bid/Ask
GBX 455.00 / GBX 500.00
Market Cap
GBX 1.35 Tril
Volume/Avg
10.7 Mil / 9.8 Mil

Key Statistics

Price/Earnings (Normalized)
9.69
Price/Sales
0.42
Dividend Yield (Trailing)
6.41%
Dividend Yield (Forward)
6.41%
Total Yield
9.13%

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
23,247

Competitors

Valuation

Metric
AV.
ZURN
ALV
Price/Earnings (Normalized)
9.6914.6812.46
Price/Book Value
1.503.351.86
Price/Sales
0.421.131.07
Price/Cash Flow
5.47
Price/Earnings
AV.
ZURN
ALV

Financial Strength

Metric
AV.
ZURN
ALV
Quick Ratio
Current Ratio
Interest Coverage
4.5915.16
Quick Ratio
No chart available

Profitability

Metric
AV.
ZURN
ALV
Return on Assets (Normalized)
0.46%1.37%0.99%
Return on Equity (Normalized)
15.72%19.33%16.92%
Return on Invested Capital (Normalized)
10.33%11.85%15.62%
Return on Assets
AV.
ZURN
ALV
See how this stock stacks up to its competitors with Morningstar Investor

Insurance - Diversified Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
BRK.A
Berkshire Hathaway Inc Class APzsbyjsvbXmxx$901.5 Bil
BRK.B
Berkshire Hathaway Inc Class BCzrczvxntzPdyj$901.5 Bil
ALIZY
Allianz SE ADRRrnjzqkjzzFhkmw$117.8 Bil
AXAHY
AXA SA ADRFvzhrbjlLhtv$83.7 Bil
ZURVY
Zurich Insurance Group AG ADRKxbtyrlmBlmsfx$77.3 Bil
AIG
American International Group IncNjqjyyvsMqv$53.3 Bil
SLF
Sun Life Financial IncJhcbmwmsgFtyf$31.7 Bil
AVVIY
Aviva PLC ADRZpjntbfGlhd$17.1 Bil
AEG
Aegon Ltd ADRRsqwphlnQmhg$10.8 Bil
AGESY
Ageas SA/ NV ADRRgqrZqm$8.5 Bil

Sponsor Center