Aviva (AVVIY) AI Stock Analysis

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Aviva

(OTC:AVVIY)

64Neutral

Aviva's overall stock score reflects a company with solid growth prospects and strategic initiatives, as highlighted in its earnings call. However, financial performance issues, such as revenue and cash flow volatility, and the limited technical analysis data, introduce some uncertainty. The attractive dividend yield provides a positive aspect, balancing the risks and reinforcing the stock's appeal for income-focused investors.

Aviva (AVVIY) vs. S&P 500 (SPY)

Market Cap

$19.82B

Dividend Yield5.61%

Average Volume (3M)14.86K

Price to Earnings (P/E)24.8

Beta (1Y)0.52

Revenue Growth1.32%

EPS Growth-37.18%

CountryUS

Employees29,091

SectorFinancial

Sector Strength87

IndustryInsurance - Diversified

Share Statistics

EPS (TTM)0.59

Shares Outstanding1,338,981,300

10 Day Avg. Volume0

30 Day Avg. Volume14,862

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

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 is a leading multinational insurance company headquartered in the United Kingdom. The company operates in several sectors including life insurance, general insurance, and asset management. Aviva offers a wide range of insurance products and services such as car, home, travel, and health insurance, as well as life insurance and pensions. The company is dedicated to providing customers with comprehensive solutions to manage their financial risks and secure their future.

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

Neutral

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.

Balance Sheet

Positive

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.

Cash Flow

Neutral

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
31.76B	32.92B	-20.83B	32.79B	45.95B
	Gross Profit
31.76B	33.95B	-20.83B	32.79B	45.95B
	EBIT
0.00	1.03B	-2.73B	2.19B	3.33B
	EBITDA
1.58B	3.06B	-887.00M	2.52B	3.75B
	Net Income Common Stockholders
683.00M	1.08B	-1.16B	1.97B	2.80B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.48B	17.27B	22.50B	12.48B	16.90B
	Total Assets
353.88B	328.84B	315.32B	358.47B	479.86B
	Total Debt
6.89B	7.37B	8.07B	7.34B	9.68B
	Net Debt
-16.59B	-9.91B	-14.44B	-5.14B	-7.22B
	Total Liabilities
345.26B	319.24B	302.42B	339.02B	459.30B
	Stockholders Equity
8.30B	9.28B	12.59B	19.20B	19.55B
Cash Flow		Free Cash Flow
8.27B	-3.08B	15.78B	-2.97B	-2.85B
	Operating Cash Flow
8.45B	-2.73B	15.88B	-2.86B	-2.68B
	Investing Cash Flow
162.00M	-350.00M	-339.00M	74.00M	-165.00M
	Financing Cash Flow
-2.49B	-1.82B	-5.94B	-4.40B	-884.00M

Aviva Technical Analysis

Technical Analysis Sentiment

Positive

Last Price14.96

Price Trends

50DMA

13.32

Positive

100DMA

12.46

Positive

200DMA

12.17

Positive

Market Momentum

MACD

0.34

Negative

RSI

67.17

Neutral

STOCH

98.49

Negative

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 14.96 is above the 20-day moving average (MA) of 13.59, above the 50-day MA of 13.32, and above the 200-day MA of 12.17, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 67.17 is Neutral, neither overbought nor oversold. The STOCH value of 98.49 is Negative, 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
HIG	83 Outperform	$34.85B	12.23	18.49%	1.62%	7.55%	14.16%
AIG	68 Neutral	$47.59B	16.10	7.10%	1.95%	-28.56%	1.14%
AVVIY	64 Neutral	$19.82B	24.83	5.49%	5.61%	1.32%	-37.18%
Sector *	63 Neutral	$12.46B	9.55	8.14%	17103.96%	12.70%	-4.66%
AEG	63 Neutral	$10.14B	14.39	9.36%	4.55%	-5.03%	―
PFG	63 Neutral	$16.68B	15.89	9.70%	3.90%	-18.19%	―
EQH	55 Neutral	$15.17B	13.43	56.67%	1.88%	17.45%	14.76%

* Financial Sector Average

Performance Comparison

AVVIY

Aviva

14.96

4.04

37.00%

AEG

Aegon

6.43

0.47

7.89%

AIG

American International Group

80.84

4.38

5.73%

HIG

Hartford Financial

122.67

26.85

28.02%

PFG

Principal Financial

74.07

-3.63

-4.67%

EQH

Equitable Holdings

49.26

11.84

31.64%

Aviva Earnings Call Summary

Earnings Call Date:Feb 27, 2025

(Q4-2024)

% Change Since: 17.61%|

Next Earnings Date:Aug 07, 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.

Q4-2024 Updates

Positive Updates

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.

Negative Updates

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.