Andrew Moss moves to reassure the market despite share price fall
Aviva chief executive Andrew Moss moved to reassure customers and shareholders today.
Reporting the group’s third quarter interim results Moss pointed to the unprecedented economic climate but said the group was positioned for further growth.
He said: “Our share price has been affected by the huge uncertainty in financial markets, but people around the world are still saving and buying insurance from brands they trust, like Aviva.
He added that Aviva is strong. He said: “The net asset value per share was 696p at 30 September. We are taking an active and prudent approach to managing our capital. Greater security for our customers and shareholders has been achieved through further hedging. Investors and customers can be confident that our disclosures provide a full picture of Aviva’s financial position.” Aviva’s share price has fallen by 45% from October 14th to 245.25p at close of play yesterday,
The group reported that its general insurance businesses and in-force life book continue to generate significant cash and capital. It reported that general insurance had achieved a 98% group combined operating ratio, in line with target. It said that its net asset value of 696p per share on an EEV basis demonstrates underlying value of group. It added that it had a strong liquidity position with direct access to £1.6bn of liquid assets and £2.2 bn of undrawn committed credit facilities. It added that the UK had stable performance in line with the market; growth in annuities and individual pensions.
Moss added that the group’s life and pensions business continued to grow, with margins maintained. He said: “Bancassurance sales have held up well at a time of exceptional difficulty for the banking industry. In the US we’re set to double our new business scale a year ahead of target.”
“We remain focused on our strategy of maintaining our financial strength and transforming Aviva. We will create value for our customers and shareholders by maximising the full potential of our existing businesses. This will position us for further growth, once a more stable economic environment returns.”
Other key financial points:
• Life and pensions sales up 12% to £25,673 million (up 4% on local currency basis)
• Group margin maintained at 3.8%
• Global long-term savings sales up 3% to £29,047 million (down 5% on local currency basis)
• Bancassurance sales resilient, up 3% to £6,915 million (down 7% on local currency basis)
• £1.9 billion IGD surplus as at 30 September with increased protection through hedging
• IGD surplus estimated at £1.3 billion at 24 October; a further drop in equities would reduce IGD by
£0.4 billion
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
