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Aviva
(OTC:AVVIY)
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Rating:58Neutral
Price Target:
$21.00
▲(5.90% Upside)
Action:Reiterated
Date:08/19/26
The score is driven by mid-tier financial performance (thin margins and highly volatile cash flows) balanced by a strong, upbeat earnings call with solid operating momentum and capital strength. Technicals support the trend but are overextended, while valuation is a drag due to the high P/E despite an attractive dividend yield.
Positive Factors
Wealth growth
Strong net flows, rising assets and profit growth support recurring fee income and deepen Aviva’s position in savings and retirement. Continued customer and AUM expansion can improve operating leverage and diversify earnings beyond insurance underwriting.
Negative Factors
Unstable cash conversion
Repeatedly uneven cash generation reduces visibility into earnings quality and limits confidence in internally funded growth. Reserve movements, working-capital timing and insurance liability flows can continue to make reported profitability less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Wealth growth
Strong net flows, rising assets and profit growth support recurring fee income and deepen Aviva’s position in savings and retirement. Continued customer and AUM expansion can improve operating leverage and diversify earnings beyond insurance underwriting.
Read all positive factors
Aviva (AVVIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.66B
Dividend Yield5.51%
Average Volume (3M)6.71K
Price to Earnings (P/E)40.1
Beta (1Y)0.44
Revenue Growth93.02%
EPS Growth-14.44%
CountryUS
Employees39,359
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)0.37
Shares Outstanding1,500,725,300
10 Day Avg. Volume7,998
30 Day Avg. Volume6,708
Financial Highlights & Ratios
PEG Ratio1.48
Price to Book (P/B)1.86
Price to Sales (P/S)0.35
P/FCF Ratio-7.22
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.62
Revenue Forecast (FY)$80.63B
Aviva Business Overview & Revenue Model
Company Description
Aviva plc provides various insurance, retirement, and wealth products in the United Kingdom, Ireland, Canada, India, and China. It operates through General Insurance; Insurance, Wealth & Retirement; Aviva Investors; and International Investments s...
How the Company Makes Money
Aviva makes money primarily by underwriting insurance and by earning fees and investment income from long-term savings and retirement-related products.
1) General Insurance underwriting (property & casualty): Aviva collects premiums on policies s...
Aviva Earnings Call Summary
Earnings Call Date:Aug 14, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 04, 2027
Earnings Call Sentiment Positive
The call portrayed a firmly positive operational and financial momentum—notably strong growth in operating profit (24%), EPS (10%), Wealth net flows (+32%), cash remittances (+47%) and clear progress on Direct Line integration and AI initiatives—while acknowledging manageable headwinds: Protection profit decline, Health falling short of its GBP 100m target, recent Canada CAT/weather risk and some underlying GI margin impacts from large losses and one‑off items. Management emphasizes balance‑sheet strength (176% solvency, aiming high‑180s), delivery of synergies and disciplined capital‑light progression, presenting more positives than negatives overall.Positive Updates
Strong overall financial performance
Operating profit rose 24% to GBP 1.3bn; operating EPS grew ~10%; IFRS return on equity was above 20% (20.3% reported). Cash remittances increased 47% to GBP 1.5bn.
Negative Updates
Protection profitability deterioration
Protection operating profit fell ~14% in the half, driven by adverse experience variances and investment in the business despite sales rising only ~1%.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong overall financial performance
Operating profit rose 24% to GBP 1.3bn; operating EPS grew ~10%; IFRS return on equity was above 20% (20.3% reported). Cash remittances increased 47% to GBP 1.5bn.
Read all positive updates
Company Guidance
The call guided to continued strong delivery: H1 operating profit rose 24% to £1.3bn with operating EPS up 10% and IFRS ROE at 20.3%, and the board declared an interim dividend of 14p (up 7%) after completing the latest buyback; cash remittances were up 47% to £1.5bn and underlying operating capital generation rose 14% to £812m. Solvency was 176% at half‑year (after a 9‑point operating capital generation add and c.3 points of non‑operating items) and management expects the ratio to be in the high‑180s by year‑end (including at least 7 additional points / £350m of Direct Line capital synergies); group full‑year operating EPS is guided to be around 11%. Key business guidance includes GI momentum with a headline COR improved to ~93.3–93.4% (on track for 2026 guidance) and Direct Line cost synergies of £130m this year (£100m run‑rate delivered so far, plus £150m capital synergies and £40m annual claims savings); Wealth net flows were up 32% to £7.6bn (AUM >£260bn) and management remains on track for £280m Wealth operating profit by 2027; Health now expects c.£90m operating profit in 2026; Retirement BPA IRR was 18% (BPA £1.1bn, YTD volumes £1.9bn).Aviva Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
67
Positive
Cash Flow
42
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 79.49B | 57.44B | 22.74B | 21.58B | 16.20B | 16.66B |
| Gross Profit | 69.20B | 58.84B | 22.74B | 40.76B | -20.72B | 16.66B |
| EBITDA | 2.18B | 2.06B | 1.58B | 2.03B | -887.00M | 1.33B |
| Net Income | 745.00M | 1.03B | 683.00M | 1.08B | -1.05B | 1.97B |
Balance Sheet | ||||||
| Total Assets | 414.26B | 395.30B | 353.88B | 328.84B | 315.32B | 358.47B |
| Cash, Cash Equivalents and Short-Term Investments | 21.07B | 18.55B | 23.48B | 17.27B | 22.50B | 12.48B |
| Total Debt | 7.01B | 7.31B | 6.89B | 7.37B | 8.07B | 8.47B |
| Total Liabilities | 405.33B | 384.21B | 345.26B | 319.24B | 302.42B | 339.02B |
| Stockholders Equity | 8.86B | 10.69B | 8.30B | 9.28B | 9.90B | 19.20B |
Cash Flow | ||||||
| Free Cash Flow | 4.73B | -2.75B | 8.27B | -3.08B | 15.78B | -2.97B |
| Operating Cash Flow | 4.93B | -2.56B | 8.45B | -2.73B | 15.88B | -2.86B |
| Investing Cash Flow | -795.04M | -1.14B | 162.00M | -350.00M | -339.00M | 74.00M |
| Financing Cash Flow | -2.68B | -2.04B | -2.49B | -1.82B | -5.94B | -4.40B |
Aviva Risk Analysis
Aviva disclosed 15 risk factors in its most recent earnings report. Aviva reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aviva Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $33.47B | 7.57 | 19.52% | 5.16% | -0.21% | 31.57% | |
79 Outperform | $37.48B | 8.86 | 22.99% | 1.73% | 5.95% | 39.99% | |
77 Outperform | $974.25B | 12.72 | 11.86% | ― | 3.93% | 36.30% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $39.85B | 13.83 | 7.27% | 2.43% | -4.19% | 1.09% | |
64 Neutral | $13.85B | 12.27 | 12.23% | 5.33% | 24.97% | ― | |
58 Neutral | $29.66B | 40.10 | 6.80% | 5.51% | 93.02% | -14.44% |
* Financial Sector Average
AVVIY
Aviva
19.73
3.04
18.21%
AEG
Aegon
9.14
1.91
26.37%
AIG
American International Group
76.21
-0.72
-0.94%
ACGL
Arch Capital Group
98.10
7.20
7.92%
HIG
Hartford Insurance
138.37
10.03
7.82%
BRK.B
Berkshire Hathaway B
506.03
12.25
2.48%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.