Aviva share price: Group to transfer assets as it prepares for Brexit

on Feb 20, 2019
Updated: Oct 21, 2019

Aviva (LON:AV) has secured a court approval to transfer around £9 billion in assets to a new Irish company, Reuters has reported. The move comes as the blue-chip insurer prepares for the UK’s exit from the European Union.

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Aviva’s share price fell in the previous session, giving up 0.50 percent to 420.40p, largely in line with losses in the broader UK market, with the benchmark FTSE 100 index shedding 0.56 percent to close at 7,179.17 points. The blue-chip insurer’s shares have lost just under 15 percent of their value over the past year, as compared with a near one-percent drop in the Footsie.

Aviva prepares for Brexit

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Reuters reported yesterday that the High Court had approved the transfer of policies after a hearing on Aviva’s application last week to move life insurance assets. The blue-chip insurer had previously secured court approval to move around £1 billion in general insurance assets.

“The current state of extreme and intensifying uncertainty regarding the terms of United Kingdom’s departure from the European Union renders the need for certainty of provision all the more pressing,” Martin Moore, Aviva’s counsel, told the court, as quoted by the newswire. The FTSE 100 group said that it would  move an additional €303 million in capital to Dublin as part of the transfer of assets, to cover its life insurance policies, and £89 million to cover those for general insurance.

Analysts on blue-chip group

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The 14 analysts offering 12-month price targets for Aviva for the Financial Times have a median target of 517.50p on the shares, with a high estimate of 575.00p and a low estimate of 450.00p. As of February 16, the consensus forecast amongst 18 polled investment analysts covering the blue-chip group has it that the company will outperform the market. 

Aviva is scheduled to update investors on its full-year performance on March 7.

As of 08:19 GMT, Wednesday, 20 February, Aviva plc share price is 420.40p.

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