GoSeigen wrote:88V8 wrote:Ss an aside, Aviva have said that in 2026 they may look to redeem their Prefs,
Would you mind linking to this announcement? None of Aviva's shares (ordinary or preference) are redeemable to the best of my knowledge so this doesn't sound right.
Seems this is the relevant statement:
https://www.aviva.com/newsroom/news-rel ... ce-shares/
Under current regulation the preference shares will no longer count as regulatory capital in 2026. Aviva will work towards obtaining regulatory approval for the preference shares, or a suitable substitute, to qualify as capital from 2026 onwards. If as we approach 2026 Aviva needs to reconsider this position, it will do so after taking into account the fair market value of the preference shares at that time.
There is no reference to redemption at all in the release.
What Aviva actually said is that they may substitute the preference shares for another instrument if they cannot get regulatory approval for the preference shares to contribute to capital. They said they'd take account of market value, but holders should beware that this may not be as good an outcome as capital reduction if yields are above 8% at the relevant time.