Aviva (AO) | Hold | Q1 26: In-line trading update

研报英文原文证据摘录

Aviva (AO) | Hold | Q1 26: In-line trading update

Aviva Hold | Target Price: 705.492628p

Company description Management

Aviva is the UK’s leading diversified insurer serving around 21.7 million UK Amanda Blanc, CEO

customers, with operations also in Ireland and Canada. It offers general Charlotte Jones, CFO

insurance, life, health, protection, wealth and retirement products, and asset George Culmer, Chair

management through Aviva Investors, with selective investments in Asia. Key shareholders

Distribution through brokers, advisers, workplace schemes, bancassurance, Free float 100.00%

platforms and direct/digital channels. The company’s origins date back to 1696. BlackRock 9.23%

Capital Research 5.07%

Vanguard 4.65%

Investment case Valuation methodology

National UK insurance champion with strong franchises in life We value Aviva on a sum-of-the-parts implied price/earnings

and P&C insurance, enjoying significant capital diversification valuation based on our forward earnings estimates.

and scale benefits, enhanced by leading market positions in We use our in-house risk-free rate and equity risk premium, with

Ireland and Canada P&C. the beta determined by earnings stability and relative Solvency

One of the most well-regarded management teams in the UK II, leverage, and balance sheet strength.

FIG, with a track record of strategic and operational delivery. Bottom-up, we assign different COEs to business lines

Strong medium-term Solvency II operating capital and cash dependent on their capital intensity.

generation underpinning shareholder distribution. Risks to our rating

Catalysts Upside risk: 1) Aviva over-delivers on cost synergies and ahead

Delivery of cost synergies and smooth integration of Direct Line. of timeframe, 2) there is strong revenue synergies realised