Would I buy shares in Aviva for my Stocks and Shares ISA now?
Insurer Aviva (LSE: AV) has come a long way since the dark days of the financial crisis. Under previous chief executive Mark Wilson, the balance sheet was strengthened, but the share price didn’t improve enough for its long-suffering shareholders. And then an ill-advised attempt to cancel £450m of high-performing preference shares drew heavy criticism from investors. The insurer has also confirmed plans to manage its life and general insurance businesses in the UK separately, presumably part of a move to try to streamline the business and improve productivity. If it works, this would clearly be a good move, as Aviva can at times feel like a super-tanker that’s hard to steer and lacks agility. The end result of all this is that the share price, given the potential for a turnaround under new management, looks very good value in my eyes with the shares trading on a P/E of just over 11 and a dividend yield 7%.