Aviva eyes split of UK business..02 Jun 2019 08:05
.. as part of shake-up.
"Observers said one option was to split the UK business — Aviva’s largest operation — into two parts. One would contain the life insurance division, the other would be non-life insurance, such as home and car cover. .. The move to break up the group would reverse Aviva’s 2017 decision to merge its two main businesses.
.. Mr Tulloch is also likely to announce a push to make Aviva more efficient. The company’s costs have been rising in recent years and the new chief executive told last week’s annual meeting that “our cost to income ratio is higher than it ought to be. Citi analyst James Shuck said: “Central costs have grown in recent years and now represent 10 per cent of group operating earnings?.?.?.?high in a sector context.
Cutting £200m out of these costs would, said Mr Shuck, add 5 per cent to Aviva’s earnings per share.
Have to agree. I can remember being tempted by this stock in its glory days but something kept me back then came its downfall. I know plenty of ex-Tesco managers some of who got a good deal but others got bullied out and that's the new Tesco, I believe. Still shop there but it isn't what it used to be by a long way.
Retail is a no-go IMO. I made some profit from Ocado but I don't like the tie-up with M&S so I shan't go back there for a while. There are other fish in the sea.
Many times I have looked at the graphs and thought why didn't I get in back then; why did I wait timidly until prices had nearly reached the summit?
If the company is a dog then give it a wide berth but where are signs that Aviva falls into that category? Sure the dividend cover could be better but it's nowhere near in the red zone like quite a few.
A couple of stocks I like have stubbornly refused to fall last week and so, having taken profits on another before they fell I bought more AV. Will see what happens between now and August.
We must be prepared to discover that many of our blue chips have taken similar measures to ward off the effect of 'no-deal'. Since the Unilever imbroglio when they made a big issue of moving their HQ companies have learnt the dangers of making their plans public. Much will have occurred under wraps and as a shareholder in several I certainly hope they haven't been sitting on their thumbs.
Now May has gone what chance of a deal is there? The rest of the EU have no great liking for her rivals for power whether it's Tory or Labour.
Must admit I don't pick up 'copper' coins if I see them lying in the street; they aren't even copper anyway, you could pick 'em up with a magnet!