Aviva to list in New York
INSURANCE giant Aviva has announced plans to list on the New York Stock Exchange as it embarks on a drive to raise its profile in the US.
The company, the world’s fifth-largest insurer by gross premiums, said it would begin trading on 20 October, just days after it said it would launch a partial initial public offering of its Dutch division Delta Lloyd.
“The US is a strategically important market for Aviva. It is the largest savings market in the world and represents a significant growth opportunity for us,” said chief executive Andrew Moss.
Analysts were not all convinced by the plans, with one saying:“I’m not quite sure why they are doing it. Sophisticated investors in the USknow how to get shares in the UK. I can’t think of any UK companies that have benefited from dual-listing.”
But Duncan Hall at FinnCap said:“It’s all very much for the positive. Obviously there is a stream of news coming from the company to bolster its capital.”
Analyst Jean d’Herbecourt at Cheuvreux was also positive on the move, predicting £1.3bn in cash gains from the New York debut.
Aviva said it would keep its primary listing in London and would not issue any new shares under the plans.
“Over 20 per cent of Aviva’s shareholders are in the US and the listing gives Aviva further access to a wider potential shareholder base,” the company said in a statement.
The listing would also allow Aviva to “capture growth in the retirement market, accelerate life insurance sales and benefit from the country’s attractive demographics,” it added.