17th Mar 2020 08:54
(Alliance News) - Aviva PLC said Tuesday it is too early what kind of financial impact Covid-19 will have on its operations.
Shares in the FTSE 100-listed general insurer were down 4.7% in London on Tuesday morning at 239.20 pence each.
Speaking at the Morgan Stanley Financial Services Conference on Tuesday, Aviva Chief Financial Officer Jason Windsor noted the insurer remains well capitalised.
As at March 13, Aviva said its solvency cover ratio stood at about 175%. At the end of 2019 its Solvency II cover ratio was 206%.
The drop, Aviva explained, allows for the company's dividend payment.
"The estimate does not allow for any increase in insurance claims or changes in experience or assumptions that may arise from Covid-19," Aviva said.
As a result, the insurer said it has expanded its hedging and asset & liability management on its equities, interest rates and credit spread portfolios.
At the end of February, Aviva held GBP2.4 billion in cash.
Aviva continued: "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," the insurer added.
By Paul McGowan; [email protected]
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