Credit investors

Statement regarding our preference shares – updated 23 March 2018

On 23 March 2018 we made a statement regarding preference shares.  You can read the announcement in our Newsroom.
 
Statement on preference shares - 15 March 2018
  • In the announcement of Aviva plc’s (“Aviva” or “we”) 2017 full year results on 8 March 2018 we signalled our intention to reduce hybrid debt by £900 million and that we were targeting more than £500 million in additional capital returns, incorporating liability management and returns to shareholders, and that we were considering our alternatives for doing so. We noted in this regard that we have the ability to cancel the Aviva and General Accident plc (“GA”) preference shares at par value (plus accrued interest, arrears and in the case of GA plc, issue premium). GA made a similar announcement on the same day.
  • We have received a number of questions regarding the reference made in the announcements to the ability to cancel the preference shares issued by Aviva and GA  through a court approved reduction of capital, subject to the approval of the relevant issuer's ordinary and preference shareholders voting together.
  • In response to these queries we are providing investors with a more detailed explanation of the mechanism through which the preference shares may, with Court and shareholder approval, be cancelled following a reduction of capital.  This is one of a number of methods by which preference shares such as these can be retired.
  • Neither this document nor the additional information provided should be taken as a statement of the Company’s intent either with respect to any decision to return capital on the preference shares, the mechanism of cancellation or the amount per preference share to be returned, and no inference of such intention should be made.   No decision has yet been taken. If and when a decision is taken, we will make the appropriate market announcements.
  • As noted in our announcement on the 8 March 2018 we and GA are evaluating the available alternatives, including how to balance the interests of ordinary and preferred shareholders.
  • Preference shareholders should consult their broker or financial adviser on what steps, if any, they should take as a result of this document.
  • If you require any help or further information regarding your shareholding, please contact Aviva’s Registrar, Computershare Investor Services PLC using the contact details below:
    • By telephone: 0371 495 0105.  Lines are open Monday to Friday, 0830hrs to 1730hrs UK time, excluding public holidays. Please call +44 117 378 8361 if calling from outside the UK.
    • By email: AvivaSHARES@computershare.co.uk 
    • Online: www.computershare.co.uk/contactus
    • In writing: Computershare Investor Services PLC, The Pavilions, Bridgwater Road, Bristol BS99 6ZZ, United Kingdom

Credit ratings and outlooks

Insurer Financial Strength Ratings are assigned to operating companies and represent an insurer's ability to pay obligations to policyholders.  Issuer Credit Ratings represent an issuer's ability to meet its overall financial commitments as they fall due.

Insurer Financial Strength Rating

Entity S&P Moody’s
A.M.Best Fitch
Aviva Insurance Ltd (AIL) A+ (Stable) Aa3 (Stable) A (Stable) AA- (Stable)
Aviva International Insurance Ltd (AIIL)
A+ (Stable) Aa3 (Stable)
A (Stable) AA- (Stable)
Aviva Life & Pensions UK Ltd A+ (Stable) Aa3 (Stable)
- AA- (Stable)
Aviva Insurance Company of Canada* A+ (Stable) - A (Stable) AA- (Stable)
Aviva Assurances S.A.
A+ (Stable)
-
-
AA- (Stable)
Aviva Vie S.A. A+ (Stable) - - AA- (Stable)
Aviva Re Ltd A+ (Stable) - - -
Friends Life Ltd A+ (Stable) Aa3 (Stable)
- AA- (Stable)
*S&P and A.M. Best also rate the Canadian operating entities Elite Insurance Company, Pilot Insurance Company, Traders General Insurance Company,  Scottish & York Insurance Company Ltd, S&Y Insurance Company

Issuer Credit Rating

Entity S&P Moody’s A.M.Best Fitch
Aviva plc A- (Stable) A2 (Stable) a- (Stable) A+ (Stable)
Friends Life Holdings plc - - - A+ (Stable)

Long term external debt and preference shares

Debt ratings are assigned to specific instruments and represent the issuer's ability to meet financial commitments in accordance with the terms of that instrument. Subordinated debt, the Direct Capital Instrument and the Step up tier 1 insurance capital securities (STICS) have equity-like characteristics and are therefore eligible to be recognised as capital by regulators and rating agencies. The lower ratings reflect this subordination.

Aviva plc

Instrument Nominal Coupon Issued Prospectus / Terms Callable Maturity Rating* ISIN
Senior €350m 0.100% 2016 Final Terms
- Dec 2018 A2/A-/A
XS1490131056
Senior €500m 0.625% 2016 Final Terms
- Oct 2023 A2/A-/A
XS1509003361
Subordinated £700m 6.125% 2001 Prospectus
Nov 2026 Nov 2036 A3/BBB/BBB+
XS0138717441
Subordinated £800m 6.125% 2003 Prospectus
Sep 2022 Perpetual A3/BBB/BBB+
XS0177447983
Subordinated €500m 6.875% 2008 Final Terms
May 2018 May 2038 A3/BBB/BBB+ XS0364908375
Subordinated £600m 6.875% 2008

Final Terms

Final Terms

May 2038 May 2058 A3/BBB/BBB+ XS0364880186
Subordinated £450m 6.625% 2011 Final Terms
Jun 2021 Jun 2041 A3/BBB/BBB+ XS0631092581
Subordinated €650m 6.125% 2013 Final Terms
Jul 2023 Jul 2043 A3/BBB/BBB+ XS0951553592
Subordinated €700m 3.875% 2014 Final Terms
Jul 2024 Jul 2044 A3/BBB/BBB+
XS1083986718
Subordinated €900m 3.375% 2015 Final Terms
Dec 2025 Dec 2045 A3/BBB/BBB+ XS1242413679
Subordinated £400m 5.125% 2015 Final Terms
Jun 2030 Jun 2050 A3/BBB/BBB+
XS1242413166
Subordinated C$450m 4.500% 2016 Final Terms
- May 2021 A3/BBB/BBB+
CAG0683QC318
Subordinated £400m 4.375% 2016 Final Terms
Sep 2029 Sep 2049 A3/BBB/BBB+
XS1488459485
Direct Capital Instrument £500m 5.9021% 2004 Prospectus
Jul 2020 Perpetual Baa1/BBB/BBB+
XS0206511486
STICS £210m 6.875% 2003 Prospectus
Nov 2019 Perpetual A3/A-/BBB+
XS0181161380
Preference shares £100m 8.375% 1992 Final Terms
- Perpetual -/-/- GB0002114154
Preference shares £100m 8.750% 1992 Final Terms
- Perpetual -/-/- GB0002124963
*Moody's/S&P/Fitch

Friends Life Holdings plc

Instrument Nominal Coupon Issued Prospectus / Terms
Callable Maturity Rating* ISIN
Subordinated £162m 12.000% 2009 Prospectus
- May 2021 -/A/A XS0430178961
Subordinated £500m 8.250%
2011 Prospectus
- Apr 2022 A2/A-/A-
XS0620022128
Subordinated $575m 7.875% 2012
Prospectus
Nov 2018 Perpetual -/A-/A-
XS0851688860
*Moody's/S&P/Fitch

General Accident plc

Instrument Nominal Coupon Issued Prospectus / Terms
Callable Maturity Rating ISIN
Preference shares 140 8.875% 1992 Final Terms
- Perpetual - GB0003692737
Preference shares
110 7.875% 1993 Final Terms
- Perpetual
- GB0003692513

Short term commercial paper

Issuer Instrument S&P Moody’s
Aviva plc Commercial paper (guaranteed by AIL) A-1+ P-1
Aviva plc Commercial paper A-2 P-1

The contents of this web page are as at 20 October 2017 and are publically published by the relevant ratings agencies – we have replicated the ratings here for information purposes only, and are not providing investment advice. Professional advice from an authorised independent adviser should always be sought before acting or relying on any of the information, and we accept no responsibility for any loss which may arise from reliance on the information on this web page, or any web page(s) to which we may have provided a link.

For details on IFRS carrying values and totals please refer to Aviva plc's annual report and accounts.

Nothing in this website is intended to constitute a financial promotion for the purposes of section 21 of the Financial Services and Markets Act 2000.