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Aviva share price subdued ahead of interim update

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Aviva’s (LON:AV) share price has slipped marginally into the red as it prepares to update investors on its half-year performance tomorrow. The update will come after FTSE 100 peer Standard Life Aberdeen (LON:SLA) posted results today, sounding a note of caution on its outlook amid macroeconomic and political uncertainties.

As of 14:46 BST, Aviva’s share price had given up 0.37 percent to 380.30p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.14 percent lower at 7,161.72 points. The group’s shares have given up a little more than 23 percent of their value over the past year, as compared with about a seven-percent fall in the Footsie.

Aviva results preview

Aviva is scheduled to post its half-year results tomorrow and IG reports that the blue-chip insurer is expected to announce operating profit of £1.38 billion, while its earnings per share are forecast to have fallen 0.9 percent to 26.6p. The newswire further noted that the company has beaten forecasts for earnings in four of the last seven updates.

“Investors remain enamoured with Aviva due to its strong fundamentals that have allowed it to maintain a healthy dividend pay-out to shareholders,” IG’s financial writer Aaran Fronda commented in a note this week, adding that the full-year number for the current year is expected to be around 7.7 percent.

The update will come after Aviva unveiled management changes in April, having prompted insider Maurice Tulloch to the top job.

Analyst ratings  update

The 17 analysts offering 12-month targets for the Aviva share price for the Financial Times have a median target of 490.00p, with a high estimate of 575.00p and a low estimate of 430.00p. As of August 2, the consensus forecast amongst 19 polled investment analysts covering the blue-chip insurer has it that the company will outperform the market.  

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