Aviva (LSE: AV.) shares have fallen by around 8% in 2026. As a result, £2,000 now buys around 319 shares in the FTSE 100 insurer (ignoring trading commissions).

Are they worth considering for an ISA or SIPP, given that the company’s dividend yield is now sitting at a high 6.6%? Let’s discuss.

The new Aviva

Aviva has come a long way in recent years. Thanks to a transformation programme implemented by current CEO Amanda Blanc, the financial services firm is now far more streamlined, efficient, and productive.

We’ve seen this in its recent results. For example, in its most recent trading update, the company reported a 19% year-on-year increase in insurance premiums for the first quarter of 2026.

It’s worth noting that the company’s wealth division is really firing at the moment. In Q1, it saw net flows of £3.3bn, up 49% year on year.

This division ended the period with £233bn in assets under management. That compares to £197m a year earlier.

We have delivered another quarter of strong trading, building momentum in 2026. We delivered profitable growth across Aviva despite global market volatility, demonstrating yet again the advantages of our market-leading positions and diverse business model.
Aviva CEO Amanda Blanc

Encouraging guidance

Looking ahead, the company said that it’s targeting 11% annualised growth in operating earnings per share between 2025 and 2028. In other words, it expects its profits to grow at a healthy rate over the next few years.

This is encouraging. Profits are a key driver of share price growth, so we could be looking at share price strength plus dividends here (note that the average analyst target is 700p right now).

How’s the valuation?

Zooming in on the valuation, it seems very reasonable. With analysts expecting earnings per share of 57.7p for 2026, the forward-looking price-to-earnings (P/E) ratio is only around 10.8.

That earnings multiple is below the UK market average. So, the shares aren’t expensive.

Is there an opportunity here?

So, are they worth a closer look? I think so.

There are risks around stock market volatility. If markets take a hit, Aviva’s assets under management are going to fall, meaning lower profits.

There are also risks around AI. If we all start using self-driving cars and robotaxis in the years ahead, it could lower demand for personal auto insurance (which is a large part of Aviva’s business).

As for the dividend, one shouldn’t assume that this is guaranteed. In the past, this company has reduced its payout on multiple occasions and we can’t rule out another reduction in the years ahead.

Overall though, I like the risk/reward proposition on offer today. In my view, this stock is worth considering as part of a diversified portfolio.

That said, there could be even better opportunities in the market to consider…

Should you invest £5,000 in Aviva Plc right now?

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And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Aviva Plc made the list?

Edward Sheldon has no positions in any shares mentioned.