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Analysis before buying or selling Aviva shares

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Elements to consider before selling or buying Aviva shares

Analysis N°1

First, Aviva's efforts to reach new markets, including the expansion of its activities in rural areas, will be closely monitored. In urban areas, Aviva's main target group is young people, and here again, attention should be paid to the marketing of products designed for this target group.

Analysis N°2

Marketing and advertising operations and all operations aimed at raising awareness among prospects about the security of their future are elements to be studied with the greatest care.

Analysis N°3

It is also known that the economic health of Europe and the world has a direct impact on the Aviva Group's activities and is therefore one of the elements you must take into account in this analysis.

Analysis N°4

Finally, we will also monitor the increasingly strong competition in this sector and in particular the entry into the market of new players.

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General presentation of Aviva

The British company Aviva is currently the leading insurance company in the UK and one of the leading companies in this industry in the world. However, we can divide its activities into two main divisions according to the turnover they generate, namely:

  • Non-life insurance, which accounts for 61.9% of the company's overall turnover. Aviva is the UK leader in this specific sector.
  • Non-life insurance and retirement savings management represent 38.1% of the company's annual turnover. In this sector, Aviva is also number one in Britain.

It is of course in the United Kingdom and in Ireland that Aviva is making the biggest part of its turnover with 40.1% of turnover. But this insurer also operates internationally. It touches the French market as well as the entire European market and is also present in Asia and Canada.

Analysis before buying or selling Aviva shares
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The major competitors of Aviva

We will now take a closer look at the various competitors of the Aviva group with a complete presentation of the main players in this insurance market in Europe and some explanations on their activities.

AXA 

First of all, the AXA Group is of course one of the leaders in this sector and is an insurance group whose products are aimed at both individuals and businesses and which meet their needs in terms of insurance services and products, personal protection, savings and asset transfer. The group also has banking activities in certain countries and is present in more than 64 different countries for assistance activities. The AXA Group is not only one of the leading insurance companies in Europe but also worldwide. It has been the world's leading insurance brand for over 12 years and the third largest financial services brand in the world.

Allianz SE 

Another competitor is the German group Allianz SE, which was founded in 1890 in Berlin and is currently the leader in this sector in Europe and the fourth largest asset manager in the world. The group is diversified in property and casualty insurance and life insurance and is active in Germany, Switzerland, France and Italy. It also relies on its network of insurance agents to market its banking products. It should be noted that a few years ago, the group acquired its competitor AGF and that it is the former owner of the Dresner Bank in Germany, which it sold to Commerzbank in 2008.

Generali 

The Italian group Assicurazioni Generali is an insurance company listed on the Bolsa Italiana and was founded in 1831 in Tieste. It is one of the 50 largest companies in the world according to Forbes magazine. It is also the third largest insurance company in the world after Allianz and AXA and the group has more than 72 million customers worldwide with a dominant position in life insurance.

CNP Assurances

This other personal insurance company was founded in France in 1959. It is also the leader in loan insurance and the second largest life insurer in this market and number 7 in Europe. CNP Assurance has been a public sector company since the 1992 privatisation law and through its shareholding structure. It benefits from the support and confidence of its historical shareholders, including Caisse des Dépôts, Banque Postale, BPCE and the French State.

Zurich Insurance Group 

Finally, the group, also known simply as Zurich, is a Swiss insurance company with its headquarters in Switzerland. It is the country's largest insurance company and one of the world's largest publicly traded companies. This global insurance company is organised into three main divisions


The major partners of Aviva

Aviva also owes its rise and its position among the leaders of insurances in Europe and in the world to the establishment of certain strategic partnerships with other large companies and here are some concrete examples:

HSBC

Aviva has been one of the trusted partner of the UK banking group HSBC for many years. The two companies strengthened their association in 2011 regarding the distribution of damage insurance in the United Kingdom and throughout Europe.

Société Générale

Until 2015, the Aviva group was also a partner of the French bank Société Générale with which it stablished the joint venture Antarius.

Predica

A smaller partnership was also created between Aviva's French subsidiary and Predica, a subsidiary of Crédit Agricole. This partnership focused on the realization of the real estate project the Carpe Diem tower in the La Défense district in Paris.

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Positive factors for Aviva shares
The factors in favour of a rise in the Aviva share price:

An in depth knowledge of the Aviva Group is of course clearly indispensable if you wish to prepare a comprehensive analysis of this company’s stock market share price. It is therefore necessary to know about this company’s history and activities and understand its strategies in order to more correctly forecast its movements in the future and its growth possibilities. To do so the best way is to compare this company’s strengths and weaknesses. We now therefore offer you the opportunity to learn more on this subject by detailing its advantages and disadvantages. 

We shall start by reviewing the major advantages and strengths of the Aviva Group that could favour a potential growth in this company’s activities and revenue and thereby promote a rise in the Aviva Company’s share price: 

  • Among the major strengths of Aviva we should note the diversity of its product portfolio. This is particularly robust and diversified and enables the company to tap into a large range of clients and differentiate itself from its competitors through its varied solutions that respond clearly to its clients’ requirements.
  • The network owned and operated by the Aviva Group is also clearly one of its major advantages. In fact, the company heads a network that is spread over 3,000 towns and cities around the world and employs over 20,000 advisors and consultants in the financial sector. In this way it benefits from an excellent geographical position and can thereby increase its sources of income.
  • Still on the subject of this company’s strong points we note the fact that the Aviva Group has show its ability to prioritise programmes and projects that are of significant social importance. This enables the group to benefit from an associated positive brand image with the general public and therefore its clients and prospective clients as well.
  • In the same way the Aviva Group has shown itself strategically capable of improving its visibility over time.  The company has regularly implemented large scale advertising campaigns and invests heavily in communications and marketing. Due to these efforts and its investments Aviva continues to benefit from a high visibility in its market compared to certain of its competitors. 
  • The strong positioning of the Aviva Group around the world is another of this company’s major advantages. It should be remembered that this group tends to increasingly improve and expand its position in new countries around the world to enter new markets and thereby avoid geo-economic risks.  
  • Finally, the last advantage of the Aviva Group that we shall examine here relates to its excellent position in its preferred activity sector even though it faces strong competition. In fact, at present, Aviva is the sixth largest insurance company worldwide in terms of net turnover.  This group accounts for no less than 53 million clients in over 28 different countries. This provides a certain renown and strength in relation to various strategic aspects with a comfortable income for the completion of investments. 
Negative factors for Aviva shares
The factors in favour of a drop in the Aviva share price:

Clearly the Aviva Group does not only offer advantageous aspects, it also has certain weak points that we shall now examine in more detail through the negative factors that could slow its growth.

  • Firstly, we should note a controversial advertising campaign launched a few years ago which displeased the general public and created certain problems for the group as well as negatively affecting the brand’s image. 
  • Secondly, the Aviva Group has also been subject to a number of complaints from its clients particularly relating to the execution of its policies. These lawsuits negatively impacted this company’s brand image in the eyes of the general public and the underlying effects are still felt even now.  

When you begin an analysis of the Aviva Group share price, particularly if you are planning a long term strategy on this asset, it is important to remember to take into account these factors in order to check the probable impact of certain data or indicators. However, the factors that we have mentioned above are also liable to change over time and so need to be verified regularly. 

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

In which countries is the Aviva Group currently present?

Through its international expansion strategy, the Aviva Group is currently present around the world. It owns several subsidiaries in the United Kingdom including Aviva UK Life for the retired with long term savings plans, Aviva UK Insurance for general insurance, Aviva Investors UK for wealth management and RAC Plc for assistance. The group also owns and operates subsidiaries in other countries around the world including Ireland, Italy, Poland, Turkey, Canada, France, China, Hong Kong, India, Lithuania, Malaysia, Singapore and Vietnam. 

How is the capital of the Aviva Group divided among private shareholders?

Firstly, it could be to your advantage to know that a significant part of the Aviva share capital is owned by private shareholders. Among these, there are a number of companies, investment groups, and funds that own shares in this company as follows: The group Dodge & Cox owns 4.10%, Causeway Capital Management owns 2.89%, the Schroder Investment Management Group owns 2.85%, the large Vanguard Group investment fund owns 2.72%, Norges Bank Investment Management owns 2.62% of this company’s capital, Legal & General Investment Management holds 2.44% of its shares, BlackRock Fund Advisors owns 2.40%, Capital Research & Management owns 2.37%, Invesco Asset Management owns 2.31% and Artemis Investment Management owns 2.01% of the Aviva Group’s share capital. 

Will the Aviva share price rise or fall?

The Aviva share price could either rise or fall and the only way to foretell its future trend more accurately is through completing advanced analyses of this asset. To do this you should therefore prepare a technical analysis and a fundamental analysis and compare the different signals you obtain.

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