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.
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