Group boosts its hedging to withstand a huge share price fall.
Aviva has strengthened its hedging against equity market turbulence and could now withstand a further 40% fall in global share prices, according to the FT.com.
The announcement, which came shortly before a scheduled investor meeting, sent the group’s shares up more than 5% to 432p this morning.
The report said that Aviva's stock has fallen 7% in the last week, and 20% in the last month, following concerns that recent market falls would reduce the strength of its asset base, which includes a large portfolio of equities.
Andrew Moss, chief executive, told the FT: “We are pleased to confirm that in the face of the recent market turmoil, Aviva’s capital position remains strong.
“Our active capital management ensures the group remains robust in the face of the current economic adversity, providing security for our customers and investors alike, and ensuring that the group is well positioned as confidence returns.”
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