The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksAviva Share News (AV.)

Share Price Information for Aviva (AV.)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 488.10
Bid: 489.10
Ask: 489.20
Change: 5.20 (1.08%)
Spread: 0.10 (0.02%)
Open: 477.10
High: 490.20
Low: 475.40
Prev. Close: 482.90
AV. Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

TOP NEWS: Direct Line eyes cost cuts as new CEO fends off Ageas

Thu, 21st Mar 2024 10:02

(Alliance News) - Direct Line Insurance Group PLC on Thursday announced plans to save GBP100 million and boost insurance margins, as it looks to stymie the unwanted advance of Belgium's Ageas SA.

Newly installed Chief Executive Adam Winslow said there is a "substantial opportunity to reduce our total cost base and significantly improve operational efficiency through reducing operational complexity and technology costs."

Winslow, who joined the Bromley, England-based motor and home insurer from Aviva PLC, made no comment on the Ageas approach as he delivered his first set of results.

Direct Line has rejected two proposals from Ageas, the latest valuing the company at 237 pence per share.

Shares in Direct Line rose 1.1% to 213.80p each in London on Thursday morning.

Direct Line described the Ageas proposal as "uncertain" and "unattractive", and said it "significantly undervalues" Direct Line and its future prospects.

Winslow, who took up his new role at the start of the month, acknowledged Direct Line needs to "significantly improve" its performance as he set a new insurance margin target of 13% by 2026. It had previously targeted 10% "over time".

Winslow, who plans to complete a strategic review by July, said the firm had a "strong platform to build from" with some of the "most recognisable brands in the market."

"We believe that Motor has turned a corner, and with business outside Motor performing well during 2023, we expect overall performance to improve in 2024," he added.

"We believe that through a combination of quick wins, alongside medium-term strategic opportunities, we can deliver a net insurance margin of 13% in 2026."

Winslow continued: "I have transformed legacy businesses before and understand what it takes to win in general insurance."

The CEO said Direct Line would incur non-recurring costs of up to GBP165 million in total by 2025 to implement the cost savings.

In 2023, Direct Line reported a pretax profit of GBP277.4 million, swinging from a loss of GBP301.8 million the year prior. Its operating loss widened to GBP189.5 million from GBP6.4 million.

Gross written premium and associated fees climbed 27% to GBP3.11 billion from GBP2.44 billion, with 46% growth in the second half.

The post-dividend solvency ratio rose to 197% from 147% the year prior.

The dividend was nearly halved to 4.0p per share from 7.6p.

Direct Line said the dividend payment should not be regarded as a resumption of regular dividends, and that it will provide an update alongside the strategic review.

In 2023, Direct Line said its net insurance margin of minus 8.3% was impacted by the continued earn-through of motor policies written during 2022 and the first half of 2023.

Motor policies written since August are estimated to be in line with the group's ambition of a net insurance margin of above 10%, the company said.

Direct Line said trading has been positive in the first two months of 2024 with premium growth across all segments.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2024 Alliance News Ltd. All Rights Reserved.

More News
24 May 2024 09:23

LONDON BROKER RATINGS: HSBC cuts Aviva; Deutsche Bank cuts Ryanair

(Alliance News) - The following London-listed shares received analyst recommendations Friday morning and on Thursday:

Read more
24 May 2024 07:52

LONDON BRIEFING: UK retail sales fall amid wet April; Co-Op Bank deal

(Alliance News) - Stocks are called to open lower on Friday, following New York lower, as hopes of interest rate cuts have come into question.

Read more
23 May 2024 17:20

London stocks fall as political uncertainty, soft economic data weigh

FTSE 100, FTSE 250 dip 0.4% each

*

Read more
23 May 2024 10:14

Aviva optimistic after delivering company-wide growth in first quarter

(Alliance News) - Aviva PLC on Thursday said it is on track to meet its 2026 targets after a strong opening quarter.

Read more
23 May 2024 07:47

LONDON BRIEFING: National Grid plans GBP7 billion capital raise

(Alliance News) - Stocks in London are called to open slightly higher on Thursday, with focus on interest rate policy in the UK and US.

Read more
23 May 2024 07:22

Aviva reports strong start to 2024

(Sharecast News) - Aviva has reported strong results for its first quarter on Thursday, with robust growth across its divisions as it maintained a solid capital position.

Read more
22 May 2024 12:53

Aviva hires former L&G general insurance CEO as non-executive director

(Alliance News) - Aviva PLC on Wednesday said it has appointed the former chief executive officer of Legal & General Group PLC's general insurance arm as a non-executive director.

Read more
22 May 2024 09:53

LONDON BROKER RATINGS: Barclays cuts NextEnergy but lifts JLEN

(Alliance News) - The following London-listed shares received analyst recommendations Wednesday morning and on Tuesday:

Read more
16 May 2024 17:33

FTSE 100 ends lower on disappointing corporate updates, BT Group soars

BT Group up after CEO aims for more than double free cash flow

*

Read more
16 May 2024 15:45

UK earnings, trading statements calendar - next 7 days

Friday 17 May 
Land Securities Group PLCFull Year Results
XLMedia PLCFull Year Results
Monday 20 May 
Kainos Group PLCFull Year Results
Likewise Group PLCFull Year Results
Nexxen International LtdQ1 Results
Ryanair Holdings PLCFull Year Results
Union Jack Oil PLCFull Year Results
Tuesday 21 May 
Assura PLCFull Year Results
Atalaya Mining PLCQ1 Results
Avon Protection PLCHalf Year Results
Caledonia Investments PLCFull Year Results
Calnex Solutions PLCFull Year Results
Cranswick PLCFull Year Results
Diaceutics PLCFull Year Results
FD Technologies PLCFull Year Results
Greencore Group PLCHalf Year Results
Ixico PLCHalf Year Results
Kingfisher PLCTrading Statement
Pennon Group PLCFull Year Results
Smiths Group PLCTrading Statement
SSP Group PLCHalf Year Results
Topps Tiles PLCHalf Year Results
Wednesday 22 May 
4imprint Group PLCTrading Statement
British Land Co PLCFull Year Results
Close Brothers Group PLCTrading Statement
Hardide PLCHalf Year Results
HICL Infrastructure PLCFull Year Results
Marks & Spencer Group PLCFull Year Results
Regional REIT LtdTrading Statement
RS Group PLCFull Year Results
Severn Trent PLCFull Year Results
SSE PLCFull Year Results
STS Global Income & Growth Trust PLCFull Year Results
Thursday 23 May 
AJ Bell PLCHalf Year Results
Argo Blockchain PLCQ1 Results
Aviva PLCTrading Statement
Bloomsbury Publishing PLCFull Year Results
Braemar PLCFull Year Results
Energean PLCTrading Statement
Essentra PLCTrading Statement
Great Portland Estates PLCFull Year Results
Headlam PLCTrading Statement
Helical PLCFull Year Results
Hill & Smith PLCTrading Statement
International Distributions Services PLCFull Year Results
Investec PLC and LtdFull Year Results
Johnson Matthey PLCFull Year Results
National Grid PLCFull Year Results
Petershill Partners PLCTrading Statement
Picton Property Income LtdFull Year Results
Qinetiq Group PLCFull Year Results
Tate & Lyle PLCFull Year Results
  
Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

Read more
14 May 2024 13:00

Big-name funds pile into real estate debt as banks retreat

LONDON, May 14 (Reuters) - Some of the world's largest investors are making deeper inroads into lending to commercial property, as they snap up market share from retreating banks and bet on an end to the sharp drops in real estate prices.

Read more
14 May 2024 06:00

Big-name funds pile into real estate debt as banks retreat

LONDON, May 14 (Reuters) - Some of the world's largest investors are making deeper inroads into lending to commercial property, as they snap up market share from retreating banks and bet on an end to the sharp drops in real estate prices.

Read more
13 May 2024 09:41

LONDON BROKER RATINGS: BAE Systems and Mondi cut to 'neutral'

(Alliance News) - The following London-listed shares received analyst recommendations Monday morning and on Friday:

Read more
2 May 2024 12:30

Direct Line revamps management with three new appointments

(Alliance News) - Direct Line Insurance Group PLC on Thursday announced several new appointments, which the company's chief executive officer hailed as "central to delivering our strategy to transform the group".

Read more
1 May 2024 17:31

UK's FTSE 100 slips ahead of Fed outcome, energy stocks weigh

FTSE 100 down 0.3%, FTSE 250 off 0.2%

*

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.