UBS has repeated its ‘buy’ advice and 505p a share price target on shares in Aviva PLC (LSE:AV.) after the pensions and savings group delivered significantly better than expected full-year results.
The Swiss bank reckons operating profit was around 50% better than forecast on a headline basis.
The dividend and cash return were in line with hopes, but the guidance for future payouts was raised.
Aviva’s resilient performance led to a 2.9% rise in the share price to 463.1p.
Of the 18 banks and brokerages logged as following the insurer, nine are positive on the stock. The consensus price target is 499p.
Earlier, Aviva posted a bumper dividend and strong growth in profits despite significant market volatility and kicked off a £300mln share buyback.
The FTSE 100-listed group posted a 35% increase in operating profit to £2.21bn in the 12 months to 31 December 2022 from £1.63bn a year before, while general insurance gross written premiums (GWR) rose 8% to £9.75bn from £8.81bn with a combined operating ratio (COR) of 94.6% (2021: 92.9%).
Chief executive Amanda Blanc said: "Our core businesses in the UK, Ireland and Canada grew in 2022, and contributed to a very strong, all-round performance.”