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Aviva Plc Sponsored Adr (AVVIY)
:AVVIY
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Aviva
(OTC:AVVIY)
75Outperform
Aviva (AVVIY) vs. S&P 500 (SPY)
Market Cap
$19.33B
Dividend Yield5.72%
Average Volume (3M)892.00
Price to Earnings (P/E)24.3
Beta (1Y)0.63
Revenue Growth1.32%
EPS Growth-37.18%
CountryUS
Employees29,091
SectorFinancial
Sector Strength84
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)0.59
Shares Outstanding1,338,981,300
10 Day Avg. Volume0
30 Day Avg. Volume892
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.29
Price to Cash Flow (P/CF)10.40
P/FCF Ratio6.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Aviva Business Overview & Revenue Model
Company DescriptionAviva plc provides various insurance, retirement, investment, and savings products in the United Kingdom, Ireland, Canada, and internationally. The company offers life insurance, long-term health and accident insurance, savings, pension, and annuity products, as well as pension fund business and lifetime mortgage products. It also provides insurance cover to individuals, small and medium-sized businesses for risks associated with motor vehicles and medical expenses, as well as property and liability, such as employers' and professional indemnity liabilities. In addition, the company provides investment management services for institutional pension fund mandates; and manages various retail investment products, including investment funds, unit trusts, open-ended investment companies, and individual savings accounts for third-party financial institutions, pension funds, public sector organizations, investment professionals, and private investors. It markets its products through a network of insurance brokers, as well as MyAviva platform. The company was formerly known as CGNU plc and changed its name to Aviva plc in July 2002. Aviva plc was founded in 1696 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyAviva makes money primarily through the underwriting of insurance policies and the management of investment funds. The company's key revenue streams include premium income from policyholders, fees from asset management services, and investment returns on the funds held to pay future claims. Aviva's life insurance segment generates revenue through premiums for life insurance, pensions, and annuities, while the general insurance segment earns income from premiums on products such as home, motor, and commercial insurance. Additionally, Aviva's asset management arm earns fees for managing funds on behalf of clients, contributing to its overall earnings. Strategic partnerships and collaborations with other financial institutions and distribution channels also play a significant role in expanding Aviva's reach and customer base, thereby enhancing its revenue generation.
Aviva Financial Statement Overview
Summary
Aviva's financial statements depict a company navigating significant revenue and cash flow volatility, coupled with inconsistent profitability. Income and cash flow challenges are offset by a stable balance sheet with moderate leverage.Income Statement
Aviva's income statement reveals mixed performance. The gross profit margin is stable, but the net profit margin has been inconsistent, with significant fluctuations in total revenue over recent years, including a dramatic decline in 2022. Revenue growth has been volatile, with a notable drop in 2022 followed by a partial recovery in 2023. The company has struggled to maintain positive net income consistently, impacting profitability metrics like EBIT and EBITDA margins, which also exhibit volatility.55
Neutral
Balance Sheet
Aviva's balance sheet shows a stable equity ratio, though the debt-to-equity ratio remains manageable, indicating moderate leverage. The return on equity has been inconsistent due to fluctuating net income, but the company maintains a substantial asset base and liquidity position. This positions Aviva well for financial flexibility despite the challenges in maintaining consistent equity returns.68
Positive
Cash Flow
The cash flow statement reflects Aviva's challenges in generating consistent free cash flow, with significant fluctuations across the periods. In 2023, operating cash flow turned positive, but free cash flow growth has been erratic. The operating cash flow to net income ratio indicates some alignment, yet the inconsistency in cash flow generation suggests potential hurdles in sustaining financial operations without volatility.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 37.71B | 31.76B | 32.92B | -20.83B | 32.79B | 45.95B | Gross Profit |
| 41.89B | 31.76B | 33.95B | -20.83B | 32.79B | 45.95B | EBIT |
| 13.01B | 0.00 | 1.03B | -2.73B | 2.19B | 3.33B | EBITDA |
| 12.37B | 1.58B | 3.06B | -887.00M | 2.52B | 3.75B | Net Income Common Stockholders |
| 1.34B | 683.00M | 1.08B | -1.16B | 1.97B | 2.80B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 19.52B | 23.48B | 17.27B | 22.50B | 12.48B | 16.90B | Total Assets |
| 460.04B | 353.88B | 328.84B | 315.32B | 358.47B | 479.86B | Total Debt |
| 9.04B | 6.89B | 7.37B | 8.07B | 7.34B | 9.68B | Net Debt |
| -10.48B | -16.59B | -9.91B | -14.44B | -5.14B | -7.22B | Total Liabilities |
| 441.36B | 345.26B | 319.24B | 302.42B | 339.02B | 459.30B | Stockholders Equity |
| 17.71B | 8.30B | 9.28B | 12.59B | 19.20B | 19.55B |
| Cash Flow | Free Cash Flow | ||||
| -1.26B | 8.27B | -3.08B | 15.78B | -2.97B | -2.85B | Operating Cash Flow |
| -942.00M | 8.45B | -2.73B | 15.88B | -2.86B | -2.68B | Investing Cash Flow |
| 10.00M | 162.00M | -350.00M | -339.00M | 74.00M | -165.00M | Financing Cash Flow |
| -1.69B | -2.49B | -1.82B | -5.94B | -4.40B | -884.00M |
Aviva Technical Analysis
Positive
14.61
Price Trends
13.47
Positive
12.71
Positive
12.56
Positive
Market Momentum
0.35
Positive
61.97
Neutral
51.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVVIY, the sentiment is Positive. The current price of 14.61 is above the 20-day moving average (MA) of 14.30, above the 50-day MA of 13.47, and above the 200-day MA of 12.56, indicating a bullish trend. The MACD of 0.35 indicates Positive momentum. The RSI at 61.97 is Neutral, neither overbought nor oversold. The STOCH value of 51.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVVIY.
Aviva Risk Analysis
Aviva disclosed 15 risk factors in its most recent earnings report. Aviva reported the most risks in the “Macro & Political” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aviva Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $19.33B | 24.25 | 5.49% | 5.72% | 1.32% | -37.18% | |
75 Outperform | $14.01B | 8.38 | 17.26% | 2.05% | 4.03% | 45.42% | |
70 Outperform | $51.51B | 17.14 | 7.10% | 1.86% | -28.56% | 1.14% | |
67 Neutral | $6.14B | 1.96 | 43.24% | 5.40% | 47.95% | ― | |
65 Neutral | $55.29B | 13.66 | 15.41% | 2.87% | 6.10% | 225.22% | |
63 Neutral | $14.39B | 9.81 | 8.95% | 4.37% | 16.38% | -11.64% | |
61 Neutral | $37.10B | 13.97 | 9.79% | 5.01% | 34.25% | 11.22% |
* Financial Sector Average
Performance Comparison
AVVIY
Aviva
14.61
2.89
24.66%
AIG
American International Group
86.20
11.19
14.92%
LNC
Lincoln National
33.34
4.35
15.01%
MET
Metlife
75.91
4.88
6.87%
PRU
Prudential Financial
104.79
-6.06
-5.47%
UNM
Unum Group
79.24
27.29
52.53%
Aviva Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 9.60% | Next Earnings Date: Aug 7, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong growth across multiple segments, including General Insurance and Wealth Management, alongside strategic acquisitions. However, challenges such as lower operating funds generation and adverse weather impacts in Canada are noted. The overall sentiment leans towards a positive outlook with strategic growth initiatives in place.Highlights
Strong Overall Growth
Operating profit was up 20% to nearly £1.8 billion, and underlying own funds generation was up 18% to £1.5 billion. The total dividend per share increased by 7% year-on-year.
General Insurance Growth
U.K. and Ireland General Insurance saw a 16% growth in premiums, with personal lines up 22% and commercial lines up 12%. Canada also experienced an 11% growth in premiums.
Wealth Management Milestone
Aviva hit £50 billion of assets on the adviser platform, extending its number one U.K. wealth position with nearly £200 billion of assets under management.
Protection Sales Surge
Protection sales were up 42%, following the completion of the AIG acquisition, with operating profit in this segment up 26%.
Proposed Acquisition of Direct Line
The acquisition is expected to create a leader in U.K. personal lines, delivering £125 million in cost synergies over and above existing commitments.
Lowlights
Lower Operating Funds Generation
Total OFG was 4% lower in 2024 due to the prior year's impact of the partnership extension with Diligenta and FNZ.
Canadian Weather Impact
Severe weather in Canada resulted in an operating profit decrease to £288 million, due to four large catastrophe events causing around CAD 8.5 billion in losses.
Challenges in Equity Release Market
The equity release market has contracted further, impacting the new business margin for retirement.
Lower Prior Year Development in Canada
Prior year development was less beneficial than in 2023, affecting the profitability of commercial lines in Canada.
Company Guidance
In the full year 2024 results presentation, Aviva reported strong financial performance with operating profit up 20% to nearly £1.8 billion and underlying own funds generation (OFG) up 18% to £1.5 billion. The company also announced a final dividend of 23.8p per share, marking a 7% year-on-year increase in total dividend per share. Aviva achieved double-digit growth across its businesses, with U.K. and Ireland General Insurance showing a 16% growth, and Canadian operations also experiencing double-digit growth. The company's wealth segment reached £50 billion in assets on the adviser platform, reinforcing its status as the number one U.K. wealth provider with almost £200 billion in assets. Aviva's Protection & Health segment saw a 42% increase in protection sales, and the retirement segment recorded high bulk purchase annuity volumes. The proposed acquisition of Direct Line is expected to deliver £125 million in cost synergies and unlock capital benefits over time. Aviva remains on track for its 2026 targets, including a return on equity of 13.6% and a strong capital position with a cover ratio of 203%.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.