Aviva is in demand after a spate of recent positive news for the insurer.
The insurer has added 13.2p to 463.6p in the wake of the confirmation of the flotation of its Dutch business Delta Lloyd and news of management changes, including appointing Mark Hodges to the new role of UK chief executive. Today come reports the company is keen to expand into the Indonesian market within the next year or so.
All this has prompted a buy note from researchers at Cheuvreux, who have put a 525p target on the shares. Analyst Jean d'Herbecourt said:
Aviva is fully benefiting from the recovery of the bond market and from the stabilisation of the real estate market. We believe that the group is now in a situation of global unrealised gains on this asset class, thus regaining some flexibility. The listing of Delta Lloyd, the disposal of the Australian business and the reattribution of the inherited estates are going to provide £1.3bn of cash at the holding level.
