Aviva's pension profits are under pressure, but RBC still sees upside

RBC Capital Markets said Aviva's core insurance and wealth businesses are performing solidly, supporting the stock's fundamental backdrop. The main pressure point is rising competition in the pension risk transfer market, which is starting to compress margins. Overall read-through is constructive but tempered by a cautionary note on profitability in a key growth area.

Analysis

RBC Capital Markets said Aviva's core insurance and wealth businesses are performing solidly, supporting the stock's fundamental backdrop. The main pressure point is rising competition in the pension risk transfer market, which is starting to compress margins. Overall read-through is constructive but tempered by a cautionary note on profitability in a key growth area.