Aviva Plc £AV - A Valuation On 24th May 2021

This robust insurance company has become quite a behemoth. They're retaining less equity, and growth is slowing, but they have a bright future.

The Story

The product of multiple merges, Aviva is one of the world’s largest insurance and financial services firms. The company was formed by the merger of CGU and Norwich Union in 2000 to create CGNU. The Norwich Union Fire Insurance Company was formed in 1797, while the Commercial Union Assurance Company was formed in 1861 after the Great Tooley St Fire. CGNU subsequently changed its name to Aviva in 2002.

Bar a horrific 2012 — the company took significant write-downs and losses as they announced plans to sell and close 16 of their non-core businesses — the company has been a steady performer. Since 2004, Aviva has produced an average return on common shareholders equity of 8.30% and has distributed almost 61% of this.