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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Insurance

Aviva forecasts trimmed by Canada weather impact

Aviva has had forecasts for this year trimmed by specialist financial broker KBW ahead of its third quarter update on 14 November.

Due to higher-than-expected weather losses in Canada and lower yields, KBW has cut its 2024 operating profits target by 8% to £1.6 billion and its solvency ratio by four percentage points.

"Canada seems to us likely to have generated insurance losses of C$0.5bn / £0.3bn for Aviva, based on the upper bound industry loss estimate and approximation for Aviva's market share."

Pension Risk Transfer has confirmed one other large (£0.2bn) transaction since the £4.1bn update was given mid-August while protection sales are likely to be up strongly again with the first-time consolidation of the AIG book.

Solvency is likely to be into the mid-190s from 205% on 30 June.

Market 'perform' with a 495p target remains the broker’s recommendation.

Shares were down 1% at 472.5p.

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