Business

Aviva dividend to fall by a third

Aviva has announced a dividend policy that will lead to it paying out almost a third less than it did before Covid-19.

The insurer said it was likely to pay out a total of 21p for 2020, rising in low to mid-single digits after that.

Amanda Blanc, the group’s CEO, said: “We are making good progress in our strategy to simplify Aviva’s portfolio and have recently announced the sale of Aviva Singapore and Aviva Vita in Italy for £2bn.

“We are announcing today a new sustainable and resilient dividend policy, based on our core markets of the UK, Ireland and Canada. As we simplify Aviva’s portfolio, we will deliver further value to shareholders by returning excess capital above 180% solvency cover ratio, once our debt leverage target ratio has been reached.”

She added: “Our trading performance is robust and our financial position is strong with a capital surplus of £11.8 billion. The first nine months have demonstrated Aviva’s ability to grow in core markets where we have attractive, long-term growth prospects.

“Bulk purchase annuities sales increased to £5 billion, which is a record for Aviva and commercial insurance premiums are up 9% across the UK, Canada and Ireland.”

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