I'm thinking about inflation hedges and I have a theory - I think Insurance companies (like Aviva) and asset managers (like Legal& General) should benefit, at least comparatively, to a rising inflationary environment - size of assets under management will increase (fee revenues rise), insured values should increase (premium revenues rise), interest rates will rise (investment margins will increase). But I can't find any historical correlations on the web yet, but this may just be a known fact. I'd be grateful to hear any thoughts. Full disclosure - I'm long as old boots in both. Happy hunting!
I agree as long as they do not cut their dividends further. Aviva is selling assets no longer considered core, will they return to us as a special dividend ?. I look at the book value of the company versus share price alongside other information before deciding to buy and certainly for Aviva , would be a buy for me
