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Pensions were in the spotlight yesterday as Chancellor Rachel Reeves revealed extensive plans to create mega retirement funds in the UK and Aviva published well-received third quarter results.
The FTSE 100-listed company saw its retirement income rise 67 per cent to £7.3bn in the nine months to September 30, as wholesale purchase annuity volumes almost doubled biggest sold.
The financial services firm, one of the sector’s biggest players in the UK, also saw its net investment flows rise by 21 per cent to £7.7bn, partly reflecting good growth in workplace pensions.
Pension restructuring: Aviva saw its retirement income rise 67% to £7.3bn in the nine months to September 30, as volumes of bulk purchase annuities sold almost doubled.
Aviva chief executive Amanda Blanc said that after a very strong performance in the third quarter, trading continued to be extremely positive across the business.
He added that the insurer remains confident in the outlook for the remainder of 2024 and beyond.
That confidence was carried over to Aviva’s share price, which gained 4.6 per cent, or 20.7p, to 475.4p.
Elsewhere in the pensions world, Just Group rose 2.5 per cent, or 3.4p, to 139p.
The retirement products business revealed it had completed its largest defined benefit de-risking transaction to date, securing a £1.8bn buyout with Pension Scheme administrator G4S.
In broader markets, the FTSE 100 index regained some footing after recent declines that saw it edge around the 8,000 mark.
It closed up 0.5 per cent, or 40.86 points, at 8,071.19, while the FTSE 250 index added 0.8 per cent, or 163.6 pence, to 20,522.81. A large number of results provided the fuel for the rise of both indices.
Stock Market Watch – Deltic Energy
Deltic Energy rose after revealing it expects first gas from the Selene prospect in 2028.
The AIM-listed North Sea oil and gas explorer, whose joint venture partner is Shell, also told investors that total drilling costs for the discovery well at Selene are estimated to be below the stipulated limit in your rights transfer agreement.
Deltic shares gained 13.2 per cent, or 0.6p, to 5.15p, but are down more than 70 per cent so far this year.
Engineer Spirax Group was one of the biggest gainers, up 4.7 per cent, or 300p, to 6,670p, as it reported strong sales growth in the ten months to October 31, despite a lukewarm market context where conditions remain challenging. Shore Capital analysts upgraded Spirax to “hold.”
3i Group rose 3.5 per cent, or 117 pence, to 3,447 pence, as the private equity and venture capital firm posted a 20 per cent rise in its half-year diluted net asset value per share and increased its interim dividend by 15 percent.
And discount retailer B&M gained 5 per cent, or 19 pence, to 398.8 pence, as it reported improved first-half figures as cost pressures continued to drive demand, with group sales rising by 3.7 per cent to £2.64 billion.
On the FTSE 250 index, First Group accelerated 6.1 per cent, or 8.3p, to 145.1p, as the bus and train operator unveiled a new £50m share buyback alongside with an improvement in its forecast for the entire year.
Construction giant Kier Group rose 8.4 per cent, or 11.6p, to 150.6p as it said it had made a good start to the new trading year.
Footwear firm Dr Martens added 6.2 per cent, or 3.35p, to 57.7p, as analysts at Goldman Sachs raised its rating to “neutral” from “sell”.
Keller fell 9.8 per cent, or 160p, to 1,476p after a trading update. The ground engineer cited challenging conditions in many markets, although he still confirmed that he is on track to meet expectations for the full year.
Defense business QinetiQ lost 9.2 per cent, or 42.8 pence, to 423.2 pence, as it left its 2025 guidance unchanged after delivering first-half results in line with expectations, and its portfolio Orders decreased 6 percent year-on-year.
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