Aviva Plc - Update on solvency position
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Update on solvency position
Aviva update on solvency position ahead of investor conference
Today Aviva will participate in the annual Morgan Stanley Financial Services Conference, which for the first time, is being held virtually. Our Chief Financial Officer, Jason Windsor, will discuss our 2019 results, and provide an update on our capital position in light of the impact of Covid-19 and recent volatility in financial markets.
Aviva remains well capitalised, near the top of its working range. Based on the closing market position on 13 March 2020, our Solvency cover ratio is estimated at approximately 175%, after allowing for payment of our proposed final dividend (c.7 percentage points). The estimate does not allow for any increase in insurance claims or changes in experience or assumptions that may arise from Covid-19. We have expanded our hedging and ALM activity on equities, interest rates and credit spreads. As disclosed at our recent full year results, our centre cash position at the end of February was £2.4 billion.
It remains too early to quantify the potential impact on our financial performance arising from Covid-19. The effect on our financial results will depend on a range of factors, including the extent and duration of the period of disruption and the impact on the global economy. At this point, we remain focused on supporting our customers and colleagues while maintaining our financial and operational resilience.