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

Share Centre stock of the week: Aviva

0
Written by:
09/11/2015
Helal Miah, investment research analyst at The Share Centre, picks Aviva as share of the week.

Aviva is an international insurance company that provides all classes of general and life assurance, including fire, motor, marine, aviation and transport insurance. The company also supply a variety of financial services, including unit trusts, stock broking, long-term savings, and fund management.

The group turned in another solid Q3 trading update in October, which showed it is continuing to make progress.  Investors should note that within the Life Insurance division, the value of new business was £823m. Additionally, within the General Insurance division the operating ratio was 94%, compared to 95.9% during the same period last year.

Aviva will be focusing on the protection side of the business moving forward and investors should acknowledge that the company is the provider of choice to RBS and the Post Office.  The group has also extended a partnership with Santander, offering life, critical illness and income protection products to Santander customers through 1300 branches. This is through both direct and online divisions, which should further strengthen protection sales. Moreover, The Friend’s Life acquisition has so far progressed well and subsequently, the company remain on target for cost synergies of £225m.

We currently recommend Aviva as a ‘buy’ for investors willing to accept a medium level of risk.  We have a high degree of faith in the company’s recovery outlook, and the decline in the share price since the summer highs may prove a good entry point. The recent hike in the dividend now also makes Aviva look increasingly attractive for income investors.

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.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

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

Read previous post:
How to avoid hiring a cowboy tradesman

Research has revealed that tradespeople in the UK spend on average two hours and 21 minutes every day repairing jobs homeowners have messed...

Close