POPULAR SHARES

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INSURANCE has never exactly got pulses racing as a business, but Aviva’s making a bit of an art form out of being dull.

Its competitors are showing signs of significant change, with Prudential growing in Asia, Legal & General leading the market in passive funds and pension derisking, and Standard Life Aberdeen reinventing itself as an asset manager.

Not all of this rousing activity has been successful though, and that’s left Aviva somewhere in the middle of the pack in terms of share price performance in recent years. Hopes had been growing that the new chief executive Maurice Tulloch might have some radical plans for the future.

Instead he’s pledged to reenergise Aviva with a focus on insurance fundamentals, customer service, and reducing complexity. Laudable goals for sure, but not a significant departure from the previous strategy.

Aviva is a leaner beast than it was, and that’s helped it generate high levels of capital, which can be used to reduce debt and pay dividends. It is trying out some new things, like a direct investment business and building a digital solution which will tie its products together.

All solid stuff, but nothing to get too excited about. A dividend yield of 7.7pc is attractive, and that remains the main incentive to hold the shares.