New life business premiums flat at Aviva, United Utilities lifts dividend as profits fall

London open

The FTSE 100 is expected to open five points higher on Thursday, having closed down 0.04% on Wednesday at 7,026.93.

Stocks to watch

Aviva said new life business premiums were flat year on year in the first quarter with growth in Savings & Retirement and lower volumes of Annuities & Equity Release in a subdued market compared to a strong start in 2020. Core life present value of new business premiums came in at £8.3bn with growth in savings & retirement and lower volumes of annuities & equity release in a subdued market compared to a strong start in 2020, the company said on Thursday. Core General Insurance gross written premiums were up 4% to £2.0bn.

United Utilities raised its dividend in line with its policy as the water company reported a 21% drop in annual profit caused mainly by lower water bills. Underlying profit after tax fell by £103m to £383m in the year to the end of March from a year earlier as revenue dropped to £1.81bn from £1.86bn. The company said the drop in profit was in line with expectations. Reported operating profit fell to £602.1m from £630.3m.

Johnson Matthey reported a 5% fall in sales in its preliminary results on Thursday, to £3.92bn, driven by the impact of the Covid-19 pandemic on its Clean Air operations in the first half. The FTSE 100 speciality chemicals company said its underlying operating profit was down 5% at constant currency to £504m, which it put down to higher administrative expenses and the impact of lower sales, offset by higher platinum group metal prices. Its underlying earnings per share declined 9% to 182p, while the board declared a final dividend of 50p per share, taking total dividends for the year to 70p per share, up 26% on the prior year.

Newspaper round-up

Boris Johnson has been warned by business leaders that a fresh package of economic support would be required if rising Covid-19 infections prevent the further relaxation of pandemic restrictions next month. After the reopening of hospitality venues indoors across all four nations of the UK, the Guardian’s latest monthly assessment of economic developments suggests the country is on course for a short-term growth boom this summer. - Guardian

Climate-heating emissions from private jet flights have soared in Europe since 2005, according to a report. It calls for wealthy fliers to pay ticket taxes of €325m a year to fund the acceleration of zero-carbon aviation technology. Carbon emissions from private flights rose by 31% from 2005-19, the report says, and private aviation had rebounded to pre-pandemic levels by August 2020, when 60% of public flights were grounded. - Guardian

Britain has a trade deal with oil-rich Gulf states in its sights, international trade secretary Liz Truss has said, as ministers close in on a £5bn investment tie-up with Abu Dhabi. Officials are working on an approach to the six members of the Gulf Cooperation Council (GCC), including Saudi Arabia and the United Arab Emirates after making the oil-pumping bloc a “definite target” for a trade deal, Ms Truss told the Daily Telegraph. - Telegraph

The race to become chairman of Ofcom will be re-run after Facebook and Google lobbied to stop the former Daily Mail editor Paul Dacre getting the job, the Telegraph can reveal. The culture secretary Oliver Dowden on Wednesday wrote to Peter Riddell, the Public Appointments commissioner, saying he wants the process to start “afresh” with a new selection panel for the £142,500-a-year role - one of the most influential in the British media industry. - Telegraph

Elliott Management will not push for a sale of GlaxoSmithKline’s vaccines and pharmaceuticals business, signalling that the US activist hedge fund is not seeking to wage an aggressive and politically contentious campaign against the British drugs group. It is also understood that Elliott is not planning to push for cuts to Glaxo’s £5 billion research and development budget, and will be supportive of GSK remaining in the UK. - The Times

US close

Wall Street stocks closed slightly higher on Wednesday as stocks tied to an economic reopening advanced yet again.

At the close, the Dow Jones Industrial Average was up 0.03% at 34,323.05, while the S&P 500 was 0.19% stronger at 4,195.99 and the Nasdaq Composite saw out the session 0.59% firmer at 13,738.00.

The Dow closed 10.59 points higher on Wednesday after major indices closed in the red in the previous session.

Reopening plays were again in focus on Wednesday, with the likes of Royal Caribbean and Carnival trading higher, while Coinbase shares were also in the green after favoured cryptocurrency Bitcoin climbed back above $40,000.

Ford stock accelerated gains after the automotive giant vowed to increase its investment in electric vehicles by $30.0bn through 2025, while Urban Outfitters jumped on the back of better-than-expected quarterly results overnight.