Aviva (AV.L)

Aviva's price just reached its highest point relative to its longer-term trend since last year.

What is going on right now?

Aviva's share price has been climbing steadily and sits about 8% above where it averaged over the past year. Trading activity has been a bit quieter than usual lately.

How is the business itself doing?

Aviva sells insurance and manages savings for millions of people in the UK. Its revenue grew about 17% recently, but its actual profit shrank significantly, with margins sitting at only around 2%.

What stands out?

The company currently carries negative cash flow of roughly £2.3 billion, even as revenue grows. That gap between growing sales and shrinking earnings is unusual.

What comes next?

Reports of pressure on UK government bonds and inflation running at 3.5% matter here directly, because both affect the prices Aviva can charge and the returns it earns on the money it holds.