Insider: director buys Aviva shares on the dip

Aviva (LSE:AV.) boss Amanda Blanc has disclosed a 6% yielding investment worth £50,000 after the insurer's shares fell from their nine-year high during a tough September.

• Our Services: SIPP Account | Stocks & Shares ISA | See all Investment Accounts

The dealings by husband Ken took place on Wednesday at a price of 688p, having fallen by 6% during the month and the peak of 737p seen after interim results on 14 August.

The Blancs topped up their stake even though her most recently disclosed shareholding is 1,124% of her £1.2 million salary, well above the 300% required by the company.

They also bought £160,000 of shares at the height of last year's gilt market volatility, when the insurer traded at a price of 623p.

Last month's sell-off, which spanned the ex-dividend date for Aviva's half-year award of 14p a share, was mirrored by the wider sector as the FTSE 100 index declined by 2%.

While the recent surge in bond yields has cut the present value of long-term liabilities, this and other benefits have been offset by heightened macroeconomic uncertainty and jitters in the build-up to the Budget later this month.

Inflation's impact on the outlook for claims costs and intense competition in the bulk purchase annuity market may also have impacted Aviva sentiment.

• Shares for the future: growing with a tailwind
• Stockwatch: a high risk/reward bet on inflated oil prices

When the company reported a 24% rise in operating profit to £1.3 billion in August's interim results, Blanc hailed the “very strong” performance and said Aviva continued to deliver for shareholders following a 7% dividend hike.

The results beat City expectations thanks to a strong performance in UK property and casualty (P&C) insurance, underpinned by the addition of Direct Line and higher reserve releases.

Blanc backed her three-year financial targets, which include an 11% compound annual growth rate in earnings per share, and said she expects 75% of earnings to be capital-light by 2028.

Beyond this, Blanc said Aviva is “in a great position” to sustain strong earnings growth in various areas including Wealth and UK and Canada general insurance.

Her results-day comments were backed up by analysts at Berenberg after the City bank lifted its price target by 20p to 820p. Peel Hunt stayed at 800p, adding that the shares were attractively valued at just under 13 times 2026 earnings and with a dividend yield of 6%.

Berenberg wrote in August: “We continue to see Aviva’s scale, diversified platform and exposure to structurally growing end-markets as highly attractive and think that the strong result is testament to the company’s qualities.”

The bank highlighted the widening moat in UK P&C after Aviva grew its share of the £55 billion market to more than double the next largest player, Admiral.

• Portfolio Dilemma: what to do after a 20% drop?
• Best and worst FTSE 100 stocks in Q3 2026

Aviva also controls about 20% of all UK workplace pension assets, while maintaining a scale position in the UK annuities market.

Berenberg said: “Both segments are undergoing structural change which is set to drive continued growth going over the medium to long term for the business.”

It added that the insurer was in a strong position to grow its dividend by mid-single digits over the current 2026-28 strategy period, having lifted the payout over the past six years. The next distribution of 14p a share worth £419 million is due on 15 October.

FD roars into action

The long-serving finance director of Liontrust Asset Management (LSE:LIO) has backed himself to lead the successful integration of another acquisition by spending £28,000 on shares.

The dealings by Vinay Abrol, who has been with the multi-strategy active asset manager since its launch in 1995, took place following Wednesday's acquisition of Hawksmoor's fund management and model portfolio service (MPS) business.

The transaction worth up to £10 million adds £1.9 billion of assets and an experienced investment team led by Ben Conway, who will continue to manage the acquired funds.

• Must read weekly preview: much expected of Tesco's results
• Budget 2026: what might Burnham and Healey have in store?

Unlike March's deal for Martin Gilbert's River Global, the acquisition is funded entirely from existing resources with no need to issue new shares.

It is expected to be immediately earnings enhancing and extends Liontrust's reach in the financial adviser channel, where MPS continues to grow ahead of the wider industry.

Panmure Liberum said: “The operational platform Liontrust has built over the past few years means the acquired business will slot in at an attractive margin, another sign that the investment in that platform is paying off.”

The broker has a price target of 460p, which compares with Friday's level of 297p after shares jumped by as much as 18% on the day of the deal. They had been above 2,000p in autumn 2021.

• 20 hottest tech stocks: week ended 2 October 2026
• Sign up to our free newsletter for investment ideas, latest news and award-winning analysis

Panmure added: “Management is not waiting for flows to turn. This is the latest in their self-help story. A 60% target margin on acquired revenue, on a deal this simple to integrate, is a sign that roll-up M&A can genuinely work in asset management.”

Abrol, who joined Liontrust's board in 2004, made his 7% yielding investment at a price of 285p. Liontrust said on its website that his experience integrating businesses was “vital to the delivery of Liontrust’s strategy and the long-term sustainable success of the company.”