Investors recommend to ‘buy’ on recovery outlook for Aviva

As Aviva reports Q4 results Sheridan Admans, investment research manager at The Share Centre, explains what they mean for investors.
 
“Aviva reported better than expected results this morning as earnings beat forecasts. Investors were buoyed by the news that Aviva has reached an agreement to ease internal debt from £4.1bn to £2.2bn by the end of 2015. This significant reduction in debt and boost to earnings may be positive for dividends ahead.
 
“We continue to recommend Aviva as a ‘buy’ for investors on its recovery outlook. It is an opportunity for investors seeking exposure to the insurance sector as we hope to see further cost savings, improving cash generation and chance of restoring dividend growth. Investors need to be comfortable with the majority of exposure to the UK and Europe, and some in Asia, however, after plans to reduce its debt we have moved its risk levels down to medium risk from medium/high.”