MARKET REPORT: Pension companies on the rise as Reeves announces changes

Pensions were in the spotlight yesterday as Chancellor Rachel Reeves unveiled sweeping plans to create UK pension mega-funds and Aviva published well-received third quarter results.

The FTSE 100-listed company saw its pension income rise 67 percent to £7.3 billion in the nine months to September 30, thanks to an almost doubling of the volume of bulk annuities sold.

The financial services provider, one of the largest players in the sector in Britain, also saw its net investment flows rise by 21 percent to £7.7 billion, partly due to good growth in workplace pensions.

Aviva chief executive Amanda Blanc said that following a very strong performance in the third quarter, trading remained extremely positive across the business.

She added that the insurer remains confident in its prospects for the remainder of 2024 and beyond.

That confidence fed through to Aviva’s share price, which rose 4.6 percent (or 20.7p) to 475.4p.

Elsewhere in the pension world, Just Group rose 2.5 percent, or 3.4 cents, to 139 cents.

The pension products company announced that it has completed its largest defined benefit risk reduction transaction to date, securing a full £1.8 billion buy-in from the trustee of the G4S Pension Scheme.

In broader markets, the FTSE 100 Index recovered somewhat after recent falls that saw it break above 8,000.

It closed down 0.5 percent, or 40.86 points, at 8071.19, while the FTSE 250 index added 0.8 percent, or 163.6p, to 20522.81. A wide range of results fueled the rise in both indices.

Engineer Spirax Group was one of the biggest winners, rising 4.7 per cent, or 300p, to 6670p, as it reported strong sales growth in the ten months to October 31, despite a tepid market environment where conditions remain challenging. Shore Capital analysts upgraded their rating on Spirax to ‘hold’.

3i Group rose 3.5 per cent, or 117p, to 3447p, as the private equity and venture capital firm posted a 20 per cent increase in half-year diluted net asset value per share and increased its interim dividend by 15 per cent.

And discount retailer B&M gained 5 percent, or 19 cents, to 398.8 cents as it reported better first-half figures as cost pressures continued to drive demand, with group sales rising 3.7 percent 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 an upgrade to its full-year forecast .

Construction giant Kier Group rose 8.4 percent, or 11.6p, to 150.6p as it said it had made a good start to the new trading year.

Shoe manufacturer Dr. Martens added 6.2 percent, or 3.35p, to 57.7p, after Goldman Sachs analysts upgraded their rating from ‘sell’ to ‘neutral’.

Keller fell 9.8 percent, or 160p, to 1476p after a trading update. The ground engineer cited challenging conditions in many markets, although he still confirmed he is on track to meet full-year expectations.

Defense company QinetiQ lost 9.2 percent, or 42.8 cents, to 423.2 cents, as it left its 2025 guidance unchanged after delivering first-half results in line with expectations, with the order book up year-on-year on year by 6 percent.