Aviva (AV.) has announced a new strategic plan to strengthen its capital position and de-risk leverage by focusing on fewer business segments and markets.
Overall, we think the strategic plan makes sense and fits well with the ongoing de-risking process. By eliminating non-core and underperforming businesses and focusing on businesses and markets that offer moderate growth but high returns, Aviva should be able to reduce its risk profit, strengthen its economic capital position and improve shareholders' returns over time.
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