Aviva got two cheers from the City for its latest results update, which was good on revenue growth but lacked a little on finances said two top broking houses.
Deutsche Bank noted it was a steady first quarter update, with decent operational momentum, especially in the UK life group.
“We believe a steady re-rating should occur over the year as further evidence around operational improvements comes through,” added the bank, which highlighted a 12% free cash flow yield.
Deutsche Bank has a target of 560p and a buy rating.
Barclays, too, said the first quarter update was a nice surprise in terms of volumes and margins, but disappointed on solvency.
P&C (property and casualty) premiums grew by 13% with double-digit growth in personal and commercial lines.
Aviva's combined ratio (underwriting profit) improved to 95.4%, up slightly from the previous year, though solvency dropped to 196% from 212% after recent year-end payouts.
Barclays' price target is 545p with an ‘equal weight’ rating.
Shares were up 1% at 402.9p.