Disposal of business units could result in Aviva share re-rate

clock

Aviva's decision to cut its losses and leave 16 underperforming business segments could result in a share re-rate, analysts have predicted.

According to sister title Post, analysts also warned that leaving the underperforming segments could prove "challenging" amid the current market climate.

Yesterday, new chairman John McFarlane confirmed the decision to exit the non-core segments which are set to produce returns below the group's required capital.

These include South Korea, UK large-scale bulk purchase annuities and small Italian partnerships.

And speaking to Post, Investec analyst Kevin Ryan said the decision is likely be a good move for the insurer.

He said: "We suspect that as disposals occur, the group will begin to look less complex and this is likely to benefit the stock.

"Aviva is likely to remain European focussed and concentrated on mature markets.

"While this may look unexciting, Europe continues to harbour a large part of the world's wealth and Aviva's products are designed to look after this; consequently we do not see this as bad market positioning."

In a bid to improve efficiency and create a leaner operating model Aviva aims to cut costs by £400m per annum over the next two years.

And Panmure Gordon & Co analyst Barrie Cornes said Aviva's disposal strategy has already been met with high levels of demand for its shares in Delta Lloyd and described the move as a boost to economic capital.

For all the latest industry news direct to your inbox, sign up for our daily newsletter.

More on Insurer

Scottish Widows protection market share hits 10.4%

Scottish Widows protection market share hits 10.4%

Half-year results

Cameron Roberts
clock 30 July 2026 • 2 min read
Aviva launches financial confidence programme

Aviva launches financial confidence programme

Partnership with learning disability charity

Jaskeet Briah
clock 29 July 2026 • 2 min read
Partner Insight: Four ways protection is changing – and why it matters for mortgage advisers

Partner Insight: Four ways protection is changing – and why it matters for mortgage advisers

New claims data highlights how protection needs to evolve – from how illness is covered to how clients engage. For mortgage advisers, these shifts are becoming central to delivering meaningful protection alongside lending writes Justin Garbutt

Justin Garbutt, Director of IFA Distribution at Vitality
clock 27 July 2026 • 4 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read