Global financial giants, Deutsche Bank and Bank of America Merrill Lynch have both downgraded insurance company, Aviva manly due to valuations.

Deutsche Bank downgraded Aviva to "hold" from "buy" due to its full valuation. "Even if management were to successfully deliver on the restructuring plans, Aviva's capital and leverage ratios would still be less good than most peers, with lower than average exposure to growth markets," it said.

Bank of America Merrill Lynch reduced Aviva's rating from "neutral" to "underperform". Analysts at the company said that there is no scope of a renewed rating for the insurance company. It revised the price target to 360p.

BoA analysts said that restructuring efforts as well as other efforts of the company to build an improved balance sheet will be dilutive. It noted that Aviva has identified non-core businesses that account for 10 per cent of the total earnings per share or about £ 300 million. It is also believed that the loss of earnings will be compensated by the reduction in costs.

Aviva is aiming to conduct a management reshuffle and cut unwanted businesses.