Aviva PLC (LSE:AV.) has received an upgrade from analysts at US bank Jefferies, which reckons the insurer is the best of the bunch currently.
Half-year results should show another period of solid progress versus its strategic plan, growth should come from the capital-light lines - General Insurance (GI), Wealth and Protection & Health.
“By further diversifying its earnings mix, Aviva has enhanced its ability to consistently deliver on (and exceed) its strategic plan at results day, which we expect will continue to be a theme.”
Underwriting profits [combined ratio] will continue to show signs of improvement in general insurance particularly in Personal Lines, where pricing action already taken in the UK and Canada should continue to earn through.
“Whilst rates are starting to moderate, pricing action taken over last twelve months should also support YoY top-line growth across GI.”
For 2024 overall, Jefferies has raised its EPS estimates by 3%, largely driven by UK&I Insurance, Wealth and Retirement.
Buy with a 525p price target remains the view.