May 29, 2020

Investors Chronicle: Aviva, British Land, Mears

The insurer blindsided many investors on April 8, when it canned the 21.4p per share payout, citing "The unprecedented challenges Covid-19 presents for businesses, households and customers, and the adverse and highly uncertain impact on the global economy". As of April 30, Aviva estimates the claims impact of Covid-19 on its general insurance division was just £160m net of reinsurance, while its solvency cover ratio was strong at 182 per cent. A 10 per cent fall in the value of the portfolio meant the proportionally-consolidated loan-to-value ratio rose to 34 per cent, writes Emma Powell. The value of the commercial landlord's retail assets fell by more than a quarter, with the impact of store closures responsible for a decline of between 6 and 7 per cent alone, and estimated rental values were down 11.7 per cent. The steep decline in shopping centre and retail park values also offset a 2.3 per cent rise in the office portfolio and a 6.5 per cent uplift from developments, which are now 88 per cent let.

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