Aviva reassures investors: capital is safe

by David Masters

Story link: Aviva reassures investors: capital is safe

Aviva has confirmed that its capital position remains strong despite tumultuous financial markets.

The company has increased its hedging against future falls in global stock markets.

In addition, it announced that in the third quarter its surplus regulatory capital increased despite falls in its share price.

Andrew Moss, Aviva CEO, said the company has taken action to ensure that even if global stock markets fall 40%, the company will only face losing £700 million.

This is much improved from Aviva’s position in June, when a 40% crash would have wiped £1.3 billion off its surplus capital.

Following the announcement, Aviva’s share price rose 24p to 434p.

Moss added that he is pleased at the company’s ’strong position’ in a climate of economic adversity.