While maintaining its 'weighted in line' recommendation on Aviva, Barclays is raising its target price from £4.8 to £5, ahead of the British insurance company's first-quarter trading update.
It expects 'continued positive momentum in general insurance gross written premiums, with the benefit of mild weather in Canada slightly offset by winter storms in the UK on the combined operating ratio'.
In the absence of any mass annuity agreements announced since the beginning of the year, we expect life insurance sales and earnings to be similar to those of the first quarter of 2023. Shareholders' equity should remain robust', he adds.
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Aviva plc is a United Kingdom-based insurance, wealth, and retirement business company. Its segments include UK & Ireland Insurance, General Insurance, and Aviva Investors, International investments, and Other Operations. The principal activities of UK and Ireland Life operations are life insurance, long-term health and accident insurance, savings, pensions and annuity business. The principal activities of UK & Ireland General Insurance operations are the provision of insurance cover to individuals and businesses for risks associated with motor vehicles, property and liability, and medical expenses. The principal activity of Canada General Insurance operation is the provision of personal and commercial lines insurance products, for risks associated with motor, property and liability distributed through insurance brokers. It also operates Lloyd's platform, encompassing its Corporate Member, Managing Agent, international distribution entities and tenancy rights to Syndicate 1492.