Share Prices & Company Research

Market News

26 Nov 2020 | 07:01

Aviva reports interim dividend and new payout policy

(Sharecast News) - Aviva announced an interim dividend of 7p per share and a new payout policy as the insurer reported a 14% decline in new business for the first nine months of the year.

The FTSE 100 group predicted it would pay a final dividend of 14p a share for 2020 taking the total payout to 21p. In coming years the payout will rise by mid-single digits, it said.

Aviva paid a total dividend of 15.5p a share in 2019 after scrapping its final dividend at the request of the Bank of England to conserve cash early in the coronavirus crisis. The company said the new policy was sustainable in times of stress and covered by cash generated by its core markets.

The company said it would return excess capital when it reached its debt leverage target of less than 30%. Aviva predicted it would exceed its original target of £1.5bn debt reduction by 2022.

In the first nine months of 2020 the value of new business fell to £714m from £828m a year earlier. Aviva reported a capital surplus of £11.8bn.

Sales rose 40% to £9.2bn in the UK, Ireland and Canada thanks to £5bn of bulk purchase annuity sales - up from £2.1bn a year earlier. In Europe and Asia present value sales fell 21% to £9.3bn on lower with-profits sales in France and Italy.

Under new Chief Executive Amanda Blanc, Aviva is stripping back its operations in Europe and Asia to concentrate on the UK, Ireland and Canada. The company has announced the sales of its Singapore business and its stake in Aviva Vita in Italy for a total of £2bn in the past two months.

Blanc said: "Our trading performance is robust and our financial position is strong. The first nine months have demonstrated Aviva's ability to grow in core markets where we have attractive, long-term growth prospects.

"We are announcing today a new sustainable and resilient dividend policy, based on our core markets of the UK, Ireland and Canada."

Blanc said the economic and social outlook was uncertain. Trading impacts from coronvairus lockdowns in the fourth quarter are hard to gauge but she said Aviva expected no significant in net business interruption claims.

Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 7th October 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.