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 | 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.