2024-06-28 06:36:08 ET
Summary
- Aviva shares have seen lackluster performance despite good core earnings and substantial capital returns.
- The Q1'24 update featured strong premium growth in the P&C operations, but also some ongoing pressures on profits through higher claims losses.
- Aviva has been pivoting towards capital-light businesses, and is now more focused on opportunities in P&C, asset management, and supplemental health insurance.
- The acquisition of Probitas could make sense as a way to shore up a few weak areas, but there is a venture into new markets for Aviva and near the top of the cycle.
- Valuation is not demanding, but the low growth potential of the business may limit its popularity and re-rating potential.
Slow and steady hasn’t been doing all that great for Aviva (AVIVY) (AV.L) shareholders, as the shares of this large British life and property & casualty (or P&C) insurer have been a lackluster performer since my last update on the company, despite relatively good core operating earnings and major returns of capital through dividends and buybacks....
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Aviva Is Executing, But Low Growth Has Limited The Upside