The recovery process is far from assured and shareholders may have to endure further cost hikes. This, combined with no news on the corporate restructuring, leads us to view the outlook as cloudy and we retain our ‘sell’ recommendation.
ALAN DEVLIN | BARCLAYS
[The results] are further evidence of the company’s focus on value over volume, with disappointing new business sales more than offset by continued progress in increasing the value of new business. With a very attractive valuation, we see a total return of 26 per cent over the next 12 months.
GORDON AITKEN | RBC CAPITAL MARKETS
The UK business is performing well and is well placed to benefit from the combination of favourable regulation and asset movements. [The new international strategy means] we have greater confidence that the dividend targets will be met. The valuation looks attractive on embedded value.