Aviva’s share price falls after profits news

<p>Profit news from Aviva led to its share price falling.</p>

Aviva's share price was down by more than ten per cent following an announcement from the insurer that its profits have fallen in the last 12 months.

Its stocks plummeted on the back of the news the firm has reported a pre-tax loss of £2.7 billion, which follows the sale of its US insurance business for more than $1 billion (£665 million).

Aviva chief executive Mark Wilson stated the company has not been able to articulate to investors why they should buy or hold Aviva shares, "which is what investors should expect of us".

Chairman John McFarlane added there will be no pay rises or bonuses for executives at the firm as a result of the disappointing financial news.

Aviva's share price had started to bounce back in the early trading this morning (March 8th), with its stocks standing at 318.80 at 08:40 GMT.

This is up 1.27 per cent on the start of the day, but only cancels out a small portion of the losses from yesterday.

Learn about the sterling and forex trading at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.