Aviva @ 279.1p, +12.5p (+4.69%).
According to reports today, the EU is thinking about ‘phasing in’ new capital rules for life insurers over the next seven years, easing the pressure and buying the industry time to meet new regulations. Insurance giant Aviva was a high riser, while Prudential, Legal & General and RSA Insurance also made gains.
Fitch Ratings also said today that insurance companies are less exposed than banks to contagion risk triggered by a Greek exit from the Eurozone "because of insurers' ability to share losses with policyholders and their lower reliance on short-term funding." (http://www.sharecast.com: London close: Markets look to Fed for more stimulus).
The first part might be enough to alleviate concerns about Aviva's capital position and, in turn, its dividend.
The second is a relatively positive rationale of Aviva's exposure to European sovereign debt concerns (relative to banking exposure).
Should be enough for the company to partake in any kind of good feel bounce should central bankers decide to inject more stimulus or a consensus European solution be implemented.
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