Evening time shot of London's famous skyscrapers including 'the Gherkin' ant the Aviva, London, England.
Aviva (LON: AV) share price has broken below a key level after trading sideways for months. The British multinational insurance company recently released its full-year results for 2022. Along with a £300 million share buyback, the company also recorded an uptick of 8% in its gross written premiums.
Nevertheless, the Combined Operating Ration (COR) of the insurance giant increased from 92.9% in 2021 to 94.6% in 2022. The gross written premiums (GWP) increased by 16% in Canada and 7% in Aviva’s home market. The COR increase was also recorded in both markets.
Despite a boost in investor payouts, Aviva (LON: AV) share price LSE has fallen to its fresh 4-month lows. The company’s shares are having their worst week in the last three years as the price has slid by 8.87% in the first four trading days of the week.
On Thursday, Aviva shares opened well above their previous close. However, the price started to tumble again as the day progressed. Till press time, LON: AV was trading at 408.9p, just a fraction above yesterday’s low of 407p. It is worth mentioning here that Aviva is not the only financial company experiencing a massive sell-off. Major British Banks like HSBC, Barclays and Lloyds also dropped to their YTD lows as Credit Suisse was denied funding from its top investor.
Our technical analysis of LON: AV chart shows that most of the price action in the past 8 months has occurred within the 384p-474p range. The range low of 384p is acting as a support. The price has retested this level multiple times in the past few months and has bounced every time.
As the shares are already trading well below the range mid, Aviva share price forecast of 384p has become quite valid. This will be a 5.9% decrease from the current price of 409.6p. The shares can avoid this bearish outlook by breaking above the 428p level in the coming days.
This post was last modified on %s = human-readable time difference 13:52