Insider: here's what directors at 3i and Aviva have been up to

Buyers of 3i Group Ord shares at a discount of more than 30% to net asset value (NAV) have included two of its directors after they disclosed dealings worth a total of £725,000.

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The purchases were made after 3i’s disclosure of a recent slowdown in sales growth at top performing investment Action overshadowed the release of strong annual results.

The shares fell by 24% at one point in Thursday’s session, which at 1,825p represented their lowest level in three years and down almost 60% from October’s record high.

They finished the week at 2,210p as finance chief James Hatchley and non-executive director Peter McKellar joined buyers with investments at 2,082.5p and 2,075.8p respectively.

NAV per share stood at 3,030p at the end of the financial year on 31 March, representing growth of 19% following another strong performance by Action and a robust showing by another of its long-term assets in Royal Sanders.

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The benchmark NAV figure has now grown by 986% over the last 14 years, which the private equity firm said highlighted its success in compounding value through volatile market cycles.

This has been driven by the performance of European discount retailer Action, which from an initial 130 million euros investment in 2011 is now valued on 3i’s books at £23.7 billion.

The group’s “strong conviction” in Action’s prospects was shown during the financial year as the deployment of additional capital increased its stake from 57.9% to 65.4%.

However, a slowdown in like-for-like sales growth to 2.4% in the first 19 weeks of 2026, has heightened City concerns about 3i’s reliance on an asset that accounts for 70% of its portfolio.

The group said the weakening from a first quarter growth rate of 3.6% reflected the impact of cooler weather in seasonal categories, as well as consumer caution in France and Germany following the start of the Iran war.

The chain now trades from 3,335 outlets in 15 countries after adding 384 net new stores in 2025 and a further 33 in the first three months of this year. This expansion momentum is set to continue after Action announced a decision to enter the US in late 2027 or early 2028.

In terms of the 2025 performance, like-for-like growth of 4.9% meant 2025’s net sales hit 16 billion euros and earnings rose 14% to 2.4 billion euros. Dividend distributions to 3i of £1.2 billion were made during the financial year.

Despite Action’s performance, shares have surrendered their significant premium to NAV that had made 3i the best performing investment trust in the five years since Covid.

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Board chair David Hutchison acknowledged that the second half of the financial year has been challenging for shareholders, but said the performance of the portfolio underpinned “our confidence for the future” after another year of returns in excess of 3i’s 15% target.

This was backed up by the board’s announcement of a £750 million share buyback programme, alongside a 15.7% increase in total dividend to 84.5p a share.

Including the planned payment of 48p a share on 24 July, 3i said it will have distributed a total of £5.4 billion to shareholders in dividends since its restructuring was announced in June 2012. This represents a compound annual growth rate of 18% over the period.

The record has drawn in interactive investor customers in the wake of last week’s sell-off, with the company the most popular investment on our platform on Thursday. Hatchley, who joined 3i in 2017, spent £208,000 on shares while McKellar bought a stake worth £519,000.

Blanc backs bounce

Aviva boss Amanda Blanc has backed up her confidence in the insurer’s medium-term targets by disclosing dealings in the 6.6% yielding shares worth £106,000.

The latest investments by Blanc and husband Ken took place on Friday at a price of 621p, which compares with record levels near to 700p seen last autumn and earlier this year.

The recent lacklustre run for shares continued last week, even though the new Direct Line owner said it had made an excellent start to 2026.

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The first-quarter performance included 19% growth in general insurance premiums and 49% advance in wealth business net flows to £3.35 billion. Bulk purchase annuity volumes fell 52% on the same quarter a year ago, offset partially by a 10% increase in individual annuities.

Blanc said: “We have delivered another quarter of strong trading, building momentum in 2026.

“We delivered profitable growth across Aviva despite global market volatility, demonstrating yet again the advantages of our market-leading positions and diverse business model.”

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She reiterated Aviva’s medium-term outlook, which includes 11% compound growth in earnings per share over the next three years and a return on equity above 20%.

City firm Peel Hunt reiterated its Buy stance and 755p target price, noting that shares are trading at 11 times forecast earnings compared with its own valuation of 13.5 times.