Aviva (OTCPK:AIVAF) management has continued to execute well on its plan to transform the company into a more predictable insurance company focused on retirement, protection, and P&C insurance, and one more likely to spin off meaningful capital returns to investors in the years to come. Despite that steady execution, the shares haven’t done all that much, with a total return of around 6% since my last update – close to the S&P 500 and better than peers like Legal & General (OTCPK:LGGNY) and Phoenix (OTC:PNXGF), but still a little less than the 8%-10% I had hoped to see.
Reconsidering the company today, I think the shares are around 15% to 20% undervalued, but with the business likely to grow around 4% henceforth, value realization will likely take some time. I do see good opportunities in the P&C operations and in the bulk annuity/pension insurance operations, but this is very much a “slow and steady” type of proposition for investors.
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Aviva Undervalued As It Nears Completion Of Its Corporate Makeover
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