Aviva (LON:AV) has inked a deal to acquire a majority stake in a low-cost ‘robo’ investment service, the blue-chip company has said. The move comes as the FTSE 100 group continues with its transformation under chief executive Mark Wilson.
Aviva’s share price has lost ground in London this morning, with the group’s shares trading without the attraction of their latest dividend. As of 08:24 BST, the shares were changing hands 1.34 percent lower at 492.20p, underperforming the broader UK market, with the benchmark FTSE 100 index having climbed into positive territory and currently standing 0.34 percent higher at 7,493.25 points.
Aviva announced in a statement this morning that it had agreed to acquire a majority shareholding in Wealthify Group, which provides a low cost, ‘robo’ investment service. The FTSE 100 company did not disclose the value of the transaction which is subject to regulatory approval.
The blue-chip insurer noted that the deal was part of its strategy to build customer loyalty by providing customers with a wide range of insurance and investment services, adding that Wealthify will be accessible to customers through MyAviva.
“This is another important step in Aviva’s digital strategy,” Blair Turnbull, Managing Director of Aviva UK Digital, commented in the statement.
The move came after Aviva disclosed last week that it had sold its shareholding in an Italian joint venture to Banco BPM, having also recently wrapped up the sale of parts of its Spanish business.
The 17 analysts offering 12-month price targets for Aviva for the Financial Times have a median target of 580.00p on the shares, with a high estimate of 640.00p and a low estimate of 420.00p. As of September 29, the consensus forecast amongst 21 polled investment analysts covering the blue-chip insurer has it that the company will outperform the market.