Aviva plans further capital return in boost to shares

A pedestrians walks previous the Aviva emblem outdoors the corporate head workplace within the metropolis of London, Britain March 7, 2019. REUTERS/Simon Dawson

LONDON, Aug 10 (Reuters) – Aviva (AV.L) plans to return extra cash to shareholders, the British insurer stated because it posted a better-than-expected 14% rise in first-half working revenue, sending its shares to the highest of the FTSE 100 gainers on Wednesday.

Activist investor Cevian Capital, which holds 6% of Aviva’s shares and has referred to as on it to spice up payouts, declined remark after the insurer stated it deliberate to launch a share buyback with its 2022 outcomes and would determine on its measurement at year-end.

Aviva, which has main companies in Britain, Canada and Eire, has already given 4.75 billion kilos ($5.73 billion)again to shareholders after elevating 7.5 billion kilos in a string of disposals since Amanda Blanc turned CEO in July 2020.

Cevian has beforehand referred to as on Aviva to return 5 billion kilos to shareholders by the tip of 2022.

Capital returns can be sustainable and common, Blanc instructed a media name, including that Aviva additionally had scope for “bolt-on” acquisitions, following its buy of Succession Wealth earlier this yr for 385 million kilos.

Aviva’s shares rose 6% to two-month highs.

Analysts at Jefferies stated they anticipated Aviva to supply recurring 250 million pound buybacks.

Aviva’s working revenue rose 14% to 829 million kilos versus 742 million kilos seen in a company-supplied consensus forecast, helped by sturdy efficiency in industrial strains.

Nonetheless, Aviva Buyers’ property beneath administration dropped by 13% within the first half to 232 billion kilos, hit like many different asset managers by falling markets.

Quilter (QLT.L) on Wednesday reported a 12% drop in property beneath administration and administration.

Aviva stated it might pay an interim dividend of 10.3 pence, in step with its full-year 2022 dividend steerage of round 31.0 pence. Cevian has stated Aviva has room to make bigger dividend funds in future.

($1 = 0.8285 kilos)

Reporting by Carolyn Cohn; Enhancing by Sinead Cruise and Alexander Smith

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