The numbers demonstrate the new management team is focused on the right metrics but it will take time before the group’s turnaround is complete. We think management may be exploring non-cash methods of reducing internal debt further. The stock is inexpensive.
BARRIE CORNES PANMURE GORDON
Aviva has delivered a solid update; however it makes it clear that there is much more to do. We welcome the progress and the honest approach towards acknowledging its issues, but believe that this is unlikely to result in the share price recovering any time soon. One for the long haul.
EAMONN FLANAGAN SHORE CAPITAL
We believe this rating, especially in respect of the yield, overlooks the very real issues surrounding the group. We reiterate our sell recommendation on Aviva, recommending switches into either RSA for much superior non-life exposure or Legal & General for a better quality life exposure.