Aviva - 2021 Interim results

[Itsallaguess]

Aviva have released their 2021 Interim Results this morning -

Key dividend information -

Interim dividend of 7.35p - 5% higher than the 7p 2020 equivalent.

Ex-dividend 26th August 2021

Dividend paid on 7th October 2021

Link to 2021 Interim Results -

https://www.aviva.com/content/dam/aviva-corporate/documents/investors/pdfs/results/2021/aviva-hy2021-analyst-pack.pdf

The above results link also contains this info -

Return of capital to shareholders of at least £4bn by HY 2022 with full details with FY results in March 20221 -

•Intended shareholder return of at least £4bn (subject to regulatory and shareholder approvals, remaining completions and market conditions) including up to £750m via share buyback to commence immediately
• Expect additional reduction in debt of c.£1bn and repayment of £0.7bn of internal loan
• Combined with £2bn repayment of debt in H1 2021, expected to utilise all of the cash proceeds from divestments of £7.5bn
• Divestment programme expected to complete by end of 2021

Strong growth in cash remittances and operating profit

• Cash remittances‡ of £1,296m (HY20: £150m) of which £1,063m from continuing operations (HY20: £108m)
• Group operating profit of £1,132m (HY20: £1,225m) and Group IFRS loss for the period of £198m (HY20: profit of £874m) reflecting non-operating items including anticipated loss on disposal of France and investment variances driven by higher interest rates
• Operating profit from continuing operations up 17% to £725m (HY20: £621m) and Solvency II operating own funds generation‡ up 12% to £710m (HY20: £632m)

Cheers,

Itsallaguess

[MDW1954]

For the first time in several years, Aviva is becoming investable, IMHO.

MDW1954

[idpickering]

For the first time in several years, Aviva is becoming investable, IMHO.

MDW1954

FWIW, I was thinking the same Malcolm. However, I think I’ve got enough in the insurance sector, of whatever ilk maybe? Hmm...

Ian.

[Arborbridge]

For the first time in several years, Aviva is becoming investable, IMHO.

MDW1954

It perks up occasionally, but on the whole, it hasn't been a brilliant HYP share - even though it was a Pyad choice from years ago. Warning: it was HYPable then as it may be now.

AAMOI, I've owned since 2007 and have the princely total return of 1.99% pa - that means any income received has been "expensively bought".

It just goes to show that it isn't always time in the market, but timing the market.

Aviva has been widely trashed by other investors, such as Luni, and Dod as a perpetual disappointment, and I would have to agree with them. It's current perking up should be set against that history.

Arb.

[MDW1954]

FWIW, I was thinking the same Malcolm. However, I think I’ve got enough in the insurance sector, of whatever ilk maybe? Hmm...

Ian.

Yes.

MDW1954

[monabri]

The Investors Chronicle summary

"Aviva shares trade on 9 times consensus forecasts for 2022. That looks good value and, if nothing else, it is nice to see the shares look interesting, rather than useless, for a change. Buy"

https://www.investorschronicle.co.uk/ne ... iva-aviva/

Interesting, rather than useless!

[Arborbridge]

The Investors Chronicle summary

"Aviva shares trade on 9 times consensus forecasts for 2022. That looks good value and, if nothing else, it is nice to see the shares look interesting, rather than useless, for a change. Buy"

https://www.investorschronicle.co.uk/ne ... iva-aviva/

Interesting, rather than useless!

I love that: damning with faint praise!

[scrumpyjack]

The Investors Chronicle summary

"Aviva shares trade on 9 times consensus forecasts for 2022. That looks good value and, if nothing else, it is nice to see the shares look interesting, rather than useless, for a change. Buy"

https://www.investorschronicle.co.uk/ne ... iva-aviva/

Interesting, rather than useless!

Yes I've held Aviva since it was Commercial Union over 20 years ago and it has been a serial destroyer of value. Pure inertia made me keep it, and the hope that 'this time it's different' and the turn round was just around the corner. The SP was over 1200p and divi 44p back then.

Still Amanda Blanc seems finally to be sorting it out so, again, I have stayed put. Indeed I topped up Mrs Scrumpy's ISA at 380p a month ago.

So maybe there is hope this time. The next year will tell, I think.

[Steveam]

I hold Aviva as part of a portfolio - it's not been great but I'm showing a profit (various buys over many years) and have had dividends. I'm showing a loss on HSBC, RDSB, BT, Lloyds ... at one time I'd have viewed HSBC & RDSB as mainstays.

Portfolios are, inevitably, a mixed bag - some will do (much) better than others. With hindsight I'd have put everything into RIO.

I don't do much analysis but the portfolios seem to be doing ok and are certainly keeping me in comfort. No doubt I could have done better if I'd not held Aviva and put the money in RIO but I'd have done much worse if I'd used the money to buy CNA or BT.

Best wishes,

Steve

[tjh290633]

For the first time in several years, Aviva is becoming investable, IMHO.

MDW1954

It perks up occasionally, but on the whole, it hasn't been a brilliant HYP share - even though it was a Pyad choice from years ago. Warning: it was HYPable then as it may be now.

My recollection is that he suggested it as a "farm bet" just before the Great Recession, and that it looked a wrong 'un for some time. I picked it up a year or so later, by which time prospects were looking much better. It has taken time but every dog has its day.

TJH

[Dod101]

Of course everyone must avoid getting carried way with Aviva. The lady has done the easy bit; cutting it down to size. She now has to prove that she can make the remaining assets work a lot harder and start producing consistently better results, something that has eluded all of her predecessors.

Dod

[Padders72]

Of course everyone must avoid getting carried way with Aviva. The lady has done the easy bit; cutting it down to size. She now has to prove that she can make the remaining assets work a lot harder and start producing consistently better results, something that has eluded all of her predecessors.

Dod

Are you going to tell us more about how we should avoid it because of the culture being wrong?

[Dod101]

Of course everyone must avoid getting carried way with Aviva. The lady has done the easy bit; cutting it down to size. She now has to prove that she can make the remaining assets work a lot harder and start producing consistently better results, something that has eluded all of her predecessors.

Dod

Are you going to tell us more about how we should avoid it because of the culture being wrong?

When it is appropriate I do as you well know. Anyone disregarding culture is silly or maybe just do not understand it. Aviva's problems stemmed I think from the huge amalgum of different insurers many during the '80s and '90s. Norwich Union, General Accident and Commercial Union to name but three. But each of those in their turn were products of earlier mergers as well. Different cultures (Norwich Union was a mutual, General Accident was a non -tariff company many years ago and Commercial Union was or considered itself a cut above the others.) That meant that a lot of baggage came with the 'new' company and that is what I think being sorted out now.

Dod

[Arborbridge]

For the first time in several years, Aviva is becoming investable, IMHO.

MDW1954

It perks up occasionally, but on the whole, it hasn't been a brilliant HYP share - even though it was a Pyad choice from years ago. Warning: it was HYPable then as it may be now.

My recollection is that he suggested it as a "farm bet" just before the Great Recession, and that it looked a wrong 'un for some time. I picked it up a year or so later, by which time prospects were looking much better. It has taken time but every dog has its day.

TJH

It was a farm bet, that's correct, but it was also selected for one of the HYPs - possibly HYP4, which is when I was getting involved. My initial HYP was formed about that time, as I recall, with HYP4.

Arb.

[Gengulphus]

It perks up occasionally, but on the whole, it hasn't been a brilliant HYP share - even though it was a Pyad choice from years ago. Warning: it was HYPable then as it may be now.

My recollection is that he suggested it as a "farm bet" just before the Great Recession, and that it looked a wrong 'un for some time. I picked it up a year or so later, by which time prospects were looking much better. It has taken time but every dog has its day.

It was a farm bet, that's correct, but it was also selected for one of the HYPs - possibly HYP4, which is when I was getting involved. My initial HYP was formed about that time, as I recall, with HYP4.

It was indeed selected for HYP4 - see viewtopic.php?f=15&t=19090.

Gengulphus