Getting latest data loading
Home / Blog / blog / Insurers paying premiums? || 06/03/2020

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Insurers paying premiums? || 06/03/2020

Insurance giant, Aviva, was one of the FTSE 100’s gains this week, seeing its stock rise almost four per cent after reporting operating profits of £3.2 billion.

Before the results, Aviva had seen a week-long slump to its share price thanks to widespread flooding and coronavirus fears.

The results looked solid all round with Aviva’s total net value of net business premiums jumping from £200 million to £9.3 billion, and costs falling by a third to £129 million.

When he took over the helm, CEO Maurice Tulloch set himself the modest goal to “run Aviva better”, so can investors rest assured that he is making progress?

His cost cutting efforts are certainly yielding returns – the insurer has sold many of its fringe businesses and slimmed down its Asian operations leaving it with a Solvency II ratio of 206 per cent. Its revenues are up too with increased premiums in General Insurance and rising inflows in Life and Savings.

Hargreaves Lansdowne though did caution that the insurance sector as a whole is at the mercy of global headwinds and the coronavirus still has the potential to be very disruptive. Aviva said it ‘was still taking action’ to reduce its exposure to potential economic shocks on this front.

Tulloch has also scrapped the previous dividend policy at Aviva, and the results saw a yield of nine per cent or 30.9p, which may not have gone down well with some investors used to double digit increases over the last few years. Analysts at Morgan Stanley, who have a price target of 460p on the stock, described the dividend yield as ‘harsh’ particularly in light of such a strong solvency ratio.

Tulloch did warn that rebuilding profitability at Aviva will take time, but the general consensus seems to be that these results present a solid, if not spectacular, opportunity for growth.

Annuity giant, Legal and General also announced their results this week, and its 12 per cent rise in full year operating profit has led to a seven per cent dividend hike for investors.

Share prices saw a modest two per cent rise in the wake of the results taking them to 248.00p at the time of writing.

The firm’s Retirement arm saw stellar growth of 27 per cent after winning big bulk annuity deals from Rolls Royce and National Grid, and a lowering of mortality expectations led to a reserve release of £155m.

Coronavirus has hit Legal & General’s insolvency ratio though – CFO Jeff Davies said it had fallen ten percentage points to 174 per cent since the start of the year.

Analysts, UBS, described it as a ‘mixed’ set of results for Legal and General, pointing out that the total nine per cent below consensus forecasts due to higher costs cancelled out some of the good news. Others though think the stock looks on the cheap side, pointing out that earnings per share have risen by 16 per cent compared to last year and the forward-looking yield for 2020 is around seven per cent.

« Back to Category

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.


Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.

Comments are closed.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.5% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
EXCELLENT

4.81 Average

156 Reviews

George

I have found Accendo staff very helpful,,and informed. I have traded with you for some years now and have no regrets. Keep up the good work!

Posted 1 year ago

Shaun D

since signing up for Accendo I have had two traders, Mark and Sam. I have found both of these to be very informative about how CFD's work and they have made it very easy for me. Since working with Sam (last four months) my trading knowledge has improved and I can make more informative decisions about which Company's to invest with. Keep up the good work Sam.

Posted 1 year ago

Anonymous

I am very happy with the service I get from Accendo Markets and in particular Amrit Panesar. He is very professional and pleasant to speak to and this counts for a lot.

Posted 1 year ago

Shreekant P

Its a good site for dealing stocks worldwide and having good staff.

Posted 1 year ago

Nick W

Krishan Appiah is one of the most dedicated / informative broker I have ever had.

Posted 1 year ago

Thomas I

Since I have been trading with Accendo Markets I have experienced much greater success than has been my experience with other trading companies mainly due to the help given by, what I consider to be my terminal with the trading floor, Mark, who has been most helpful in reminding me of the progress of my positions throughout the day and keeping me in touch with those positions so that I can more easily make successful trades when appropriate instead of missing out on opportunities through lack of attention. He draws my attention to the situations and enables me to make profitable trades. I am very happy with the situation at the moment and am enjoying the experience. Thomas Irving.

Posted 2 years ago

Kartik A

Accendo markets keep me connected with the market and its very well followed by Mr. Krishan Appiah ,which helps me to take certain decision on time.

Posted 2 years ago

Peter p

I have been trading with Accendo Markets and James Abbott my account manager for coming on 5 years now, James Abbott the senior trader of Accendo Markets provides me with up to minute information when I need it and find him very easy and professional to deal with. Whenever I need to trade or am not sure about anything James is always their to help with any queries I may have. The Accendo Platform I find very easy to use and navigate although it has been slightly changed over the years but definitely for the better. Personal when I do trade 90% of the time, I rather telephone call to place my trade dealings and if James is not there to take my call I find others at Accendo like Sam, Lee take my trades and are. All in all everyone at Accendo Markets are amazing to deal with and my relationship with Accendo is just as I like it. Peter Petrou

Posted 2 years ago

Mrs. J

"Our Trader, Aymen Azizi, has been nothing but attentive to our every need throughout our long relationship with him. No issue is too small, full explanations on all our questions."

Posted 2 years ago

Brian R

I have been with Accendo for a long time now, ten or twelve year's, probably more . As I told Sam (my trader) I thought that CFDs were better than sex . I stopped trading for a few years and only started back about a couple of months ago. But it is as if I had never been gone , so to speak. Sam has helped me every step of the way, at my age one forgets things. I have only praise for Accendo and as far as I am concerned the platform is the best . Now I am back trading at 71 years of age, I might even try sex again. Brian Robertson.

Posted 2 years ago

Jim W

I understand how to make a profit with CFDs. I am restricted by the range of companies I have knowledge of. Although, I am not sure that is a big problem. Tom Robertson is a very fine man.

Posted 2 years ago

Rebekah S

Well, I would not be trading without the help of my trader, Sam Alnakkash. He provided a really great overview of Accendo Markets, an insight into trading in general and how to get started in trading online. His advice, support and training has been fantastic all along the way, enabling me to start trading earlier than I would have done had I not had the support. He has also been very adept at understanding me as a client in order to help me achieve my trading goals. I still have a lot to learn and hope I will get there.

Posted 2 years ago

Nick z

I like the updates on shares I trade. Updates from Bloomberg and Reuters plus industry updates and breaking news. I've had Matt Grice and James Abbott and found both to be excellent. I would like to continue a personal service with James. He understands how and which stocks I trade.

Posted 2 years ago

Steve O

Excellent, knowledgable broker interaction and communication, coupled with very good research and analysis.

Posted 2 years ago

William P

Being new to direct trading I needed help and was given all the time and advice that I needed to feel fully able to make decisions on what I wanted to invest in. I asked for and got exactly the type of info I required provided by Tom Cook, who I would recommend to anyone looking for help.

Posted 2 years ago

Mr. W

I have been dealing with accendo for the past 8 years my broker Amrit I find him very helpful when he is there lol and had many offers to change but will not do it Bill Roberts

Posted 2 years ago

Zoran N

Very good all round service! Timely market information. (charts + trends coverage ) On the ball accounts managers ,quickly available and alert . Part of my success owed to my personal manager Mr Sam Springet , than you.

Posted 2 years ago

Mr Brian C

Easy to deal with.....

Posted 2 years ago

Muhammed S

Accendo markets are great for trading cfds and their research is second to none! Aymen manages my account is extremely helpful and always keeps me updated on market info. Thanks again

Posted 2 years ago

Mr Buta B

Always available, whenever I call I get straight through to someone that can and will help. The staff are very knowledgeable, helpful and easy to talk to.

Posted 2 years ago

Stephen B

Aymen Azizi keeps an eye on what is happening in the market and informs me with timely relevancy, email call, and txt.

Posted 2 years ago

.