Aviva’s share price fell 1.7% this morning as the eurozone crisis deepened, meaning 10% of its share price has been knocked off this month.
The UK’s largest general insurer’s share price has fallen from a high of 445p to 400p this month. This morning the share price fell from 7p, knocking off 1.7% in a just a few hours as investors fear a Greek or US debt default.
Although Aviva chief executive Andrew Moss said last year its exposure to peripheral European sovereign debt was relatively small, investors are still concerned, especially if the situation in Ireland deteriorates and there is eventually a ‘soft restructuring’ of debt.
Latest newspaper reports suggest Germany is keen to press for a ‘soft’ restructuring of Greek debt, which could trigger similar actions for Portugal and Ireland.
President Obama has until August 2 to raise the US debt ceiling or face a temporary, but devastating, default.
Aviva, like other insurers, is also suffering from a general flight from ‘risky’ assets such as shares into safe havens like gold.
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.
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