On the other hand, we believe that Intact is unlikely to be keen on the United Kingdom life market. In addition, looking at Allianz's combined ratio development, the company has lower profitability in the UK market and would be decremental to the German company on a P&L basis. Therefore, here at the Lab, we believe a combined merger might pose a regulatory risk. Why? In 2020, Allianz acquired LV non-life insurance and is now the second non-life insurer in the UK (after Aviva). Having said that, a transaction is not a likely scenario. However, its closest Canadian competitor (Intact Financial Corp) trades at a 2024 P/E ratio of more than 14x. One-quarter of Aviva's operating profit is coming from its Canadian division. a discounted valuation on a 2024 8.5x price-earnings multiple.a 12% capital return made by 1) its ongoing dividend, which was also recently increased for a total yield estimates of 8%, 2) a 2% uplift in Aviva's cash remittances projection, and 3) a £300 million share buyback calculated on the company's current market cap which is now is yielding approximately 2%.Looking back, the company performed a business transformation thanks to Amanda Blanc, and the company currently offers: The company appears inexpensive, given its Canadian P&C franchise and UK Life profit generation. Given that we are the first believers in Aviva's current undervaluation, we are unsurprised about a potential takeover. However, we should report that none of the above companies disclosed positively in response to the report. The news also mentioned an (unnamed) US insurer interested in Aviva. In detail, the British newspaper Times reported rumors of a possible takeover by a foreign buyer with Allianz (covered by the Mare Evidence Lab team), Intact Financial Corp, and Try Group reportedly on the lookout. ![]() We usually do not comment on takeover speculation however, three days ago, Aviva was up by more than 10% as The Times cited a potential bid for the company. Our buy case recap was supported by a solid execution (organically and inorganically), a tasty DPS, a non-positive stock price momentum not paired with a fall in profits, a safe balance sheet thanks to accumulative cash remittances and an accelerating growth in its asset-light businesses. ![]() Here at the Lab, we recently commented on Aviva's H1 financial release ( OTCPK:AIVAF) ( OTCPK:AVVIY).
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |