You are here: Home - Investing - Experienced Investor - News -

Aviva/Friends Life merger: successful?

Written by:
Last Friday, the merger of Aviva and Friends Life was rubber stamped in Guernsey, with the shares now listing under the single Aviva brand.

Shares in the new unified insurance giant were well-received by the London Stock Exchange on its first day of trading. Aviva shares had risen nearly 1.71 per cent (to 564.50p) by the afternoon; analysts at Barclays upgraded their rating to ‘overweight’, on the basis that the merger “significantly strengthens Aviva’s balance sheet, and improves the group’s cash generation capabilities.”

“We believe Friends Life to be an underappreciated, highly cash generative asset with an over-capitalised balance sheet, and little gearing,” the Barclays research note continued.

The successful completion of the merger, and launch of the new entity, follows positive news last month that both firms achieved annual profits last year that surpassed analysts’ forecasts. The achievement of the deal will result in revenues of almost £50m for the banks and brokers that assisted in it, which includes Goldman Sachs, JP Morgan, Morgan Stanley and RBC Capital Markets.

As part of the merger, the new partnership will undertake a cost-cutting initiative designed to save £223m annually, which will necessitate cutting over 1,500 jobs.


There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • @YourMoneyUK I will be travelling to UK from Gran Canaria and im in reciept of pension credit, am i eligible for this payment?
  • Unclaimed money scheme expanded to aid Covid recovery: @YourMoneyUK
  • RT @thenutmegteam: Keeping on top of your pension now could well pay dividends in the future. ⏳ Nutmeg's savings and investments specialis…

Read previous post:
Compensation scheme will now cover annuities

The Financial Services Compensation Scheme will cover 100 per cent of the value of annuities if the provider goes bust...