I think these 2 FTSE 100 financial services companies are bargains in a market crash!

Last week, Aviva (LSE:AV), alongside RSA, Direct Line, and Hiscox all decided to suspend dividend payments. On the other hand, Legal & General (LSE:LGEN) confirmed it would be going ahead with its payout. 

With share prices tumbling and dividends being suspended, doom and gloom may be the order of the day. However, herein lies the opportunity to pick up cheaper shares in a couple of these FTSE 100 stalwarts.

Aviva

When the Covid-19 pandemic swept the country and UK markets were affected, Aviva saw approximately 40% of its share price value fall. Compare this to the 25% drop in the value of the FTSE 100. 

Tumbling share prices aren’t always an opportunity to pick up cheaper shares. In this case, however, I think it is just that. At the time of writing, shares can be picked up at just over 250p per share. Compare this to mid-February when they were trading at approximately 420p per share.

Last month Aviva released its full-year results to 31 December 2019. There were plenty of positive takeaways, including a 6% increase in operating profit and  a 3% increase in full-year dividend. Add to this a 2% increase in customer numbers as well as a 2% increase in sales overall. With the dividend scrapped, the insurance company will see its capital ratio increase by near 7%. 

With the current price-to-earnings ratio sitting at just under 5, this to me indicates limited risk and a slight undervaluation too.

The short term may look discouraging, but for me it’s an opportunity to invest in a blue-chip giant. One that will not face major trouble in the current bear market, in my opinion.

Legal & General

Legal & General is another company whose share price was affected last week.

L&G’s share price has seen a decrease of over 50% since the pandemic struck UK markets. It reached a low of 138p, but at the time of writing, has staged a mini-revival and currently trades at over 200p per share.

Early March saw the release of full-year results to 31 December 2019. 2019 was a good year with some positive results that solidify my belief that shares in L&G are a great opportunity. 

Net profits were flat at £1.8bn as the company’s core retirement and investment management businesses grew. Sales of bulk annuities to corporate pension schemes came in at a record £11.4bn — 25% higher than in the previous year. 

The UK arm saw a great coup in the form of taking on a £4.6bn chunk of the Rolls-Royce pension scheme. This means L&G will assume responsibility for paying the pensions of 33,000 members. 

The company increased its dividend 7% to 17.5p per share. L&G has confirmed it will be paying out its final dividend. It also ended the year with a solvency ratio of 184%, but financial market movements since then have pushed the figure down by 10%.

With a current price-to-earnings ratio of just 5, the stock offers a good level of security. Combining a cheaper share price, security in the stock itself, and positive results for the financial year just reported, I see a favourable outlook for L&G from an investment perspective.