Aviva to hand investors at least US$5.6b after sale of non-core businesses

[LONDON] Aviva plans to return at least US$5.6 billion to investors using proceeds from the recent sale of non-core businesses.

The UK-based insurer and asset manager will start with an immediate £750 million (S$1.4 billion) share buyback, and the balance will be returned to investors by the end of the first half of 2022, Aviva said in an earnings statement on Thursday.

"We are delivering on our commitment to make a substantial capital return to our shareholders," chief executive officer Amanda Blanc said in the statement. Since joining Aviva last year, Ms Blanc has focused the firm on its UK, Ireland and Canada businesses while selling off or restructuring units in other markets.

The firm posted a drop in first half operating profit to £1.1 billion versus £1.2 billion a year earlier.

BLOOMBERG