Based in London, Aviva is an insurance company that provides health insurance and fund management products.
RBC downgraded Aviva because its economic capital coverage ratio is at 172%, which is "towards the lower end of what is acceptable to investors," Benzinga reports.
"We believe selling commercial mortgages and staying clear of UK bulk annuities [which is high growth, high margin] indicates Aviva itself thinks its ratio is not high enough," RBC said, according to Benzinga.
The company recently acquired Friends Life Group, which could add 10 percentage points to this ratio, RBC said.
Shares of Aviva were down 0.9% to $15.42 in pre-market trading on Friday.
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