THE chief executive of Aviva plc (LSE:AV.) has shrugged off claims that the insurance group is undervalued and at risk of becoming a foreign takeover target. Dame Amanda Blanc challenged takeover speculation after highlighting the company's "significant improvement" since she took the helm over three years ago. She said: "The best defence of any organisation is to have a strong performance.

And that is what you have seen from Aviva this morning. So am I worried about it? No, I am not." Her bullish comments follow reports of foreign suitors showing interest in the London-listed group, which continues to trade at a discount compared to rivals.

Aviva is reportedly in the sights of Italian insurer Generali, which has drawn up a list of potential takeover targets. However, there has yet to be any formal talks between the parties, as reported by Bloomberg earlier this week. Dame Amanda, who became Aviva's first female chief executive in 2020, yesterday described this takeover speculation as "largely market chatter".

It follows last year's reports that Allianz, Intact Financial and Tyrg were interested in acquiring Aviva, which sparked a surge in the company's share price. JP Morgan analysts later said these reports were unsurprising given how "inexpensive" Aviva was, despite providing high returns for investors.