Aviva reiterates share buyback plans as 9-month premiums rise

AVIVA reiterated plans on Wednesday (Nov 9) to start a share buyback programme alongside its 2022 results as it reported a 10 per cent rise in general insurance gross written premiums in the first nine months to 7.2 billion pounds (S$11.6 billion).

The value of new business in the British insurer’s UK and Ireland life division rose 46 per cent over the same period to £466 million.

Aviva, which is under pressure from activist investor Cevian Capital to increase investor payouts, said the size of the buyback would be decided by the board at year-end.

Aviva’s solvency ratio, a key measure of capital strength, came in at 223 per cent, which it said was well above the top end of its target range. Its dividend guidance remained unchanged, it added.

“Aviva’s capital and liquidity position is strong and our high-quality asset portfolio has performed well during the recent period of extreme market volatility,” CEO Amanda Blanc said in the trading statement, referring to turmoil in the UK government bond market in late September.

“We are on track to deliver our financial targets and trading momentum is building.”

Aviva’s main markets are Britain, Canada and Ireland. REUTERS