Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.


Insurer Aviva says capital return and costs targets on track

By Carolyn Cohn

LONDON (Reuters) -British insurer Aviva is on track to return at least 4 billion pounds ($5.41 billion) to shareholders and meet cost saving targets, it said on Thursday, as activist investor Cevian pushes for higher returns.

Cevian took a 5% stake in Aviva this year and wants the insurer to return 5 billion pounds in capital to shareholders by the end of 2022 after a recent spate of international disposals.

Aviva said in August that it would return 4 billion pounds to shareholders, which Cevian said was insufficient.

There are some different views out there from certain shareholders,” Aviva finance chief Jason Windsor told Reuters, adding that the stakeholders remain “very constructive” in their interactions.

Aviva on Thursday said it had completed 450 million pounds of a 750 million pound share buyback. The remainder of the capital return – at least 3.25 billion pounds – is likely to take place in the second quarter of next year, Windsor said.

Aviva is also looking to build up its wealth advisory business, either through M&A (mergers and acquisitions) or organic growth, Windsor said, though a purchase would be for less than a billion pounds.

It’s the much smaller end of the spectrum – it’s about a capability add-on to an already sucessful wealth business,” he said.

Aviva also said it was on course to achieve a savings target of 300 million pounds in 2022, relative to a 2018 baseline.

Cevian has said it believes there to be scope for further cost-cutting by the insurer, totalling at least 500 million pounds by 2023.

Net flows into Aviva’s savings and retirement business rose 21% to record levels in the first nine months of the year while general insurance premiums rose 5%, it said in a statement.

Panmure Gordon analysts described the results as “solid” but said Aviva could return an additional 1 billion pounds to shareholders.

Aviva’s shares, which have climbed 25% this year, were up 0.9% at 409.4 pence at 0842 GMT.

($1 = 0.7389 pounds)

(Reporting by Carolyn CohnEditing by Rachel Armstrong and David Goodman)

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!

By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts