Aviva launches €680 million shares buy-back

Aviva launches €680 million shares buy-back

Insurance giant Aviva has announced a €682 million shares buy-back as part of efforts to deploy €2.3 billion of excess capital.

Alongside the buy-back, the group said €1 billion will be spent on debt reduction and €570 million on bolt-on acquisitions, confirming figures released in March.

Boss Mark Wilson said: "Aviva has significant surplus cash and capital and we are deploying €2.3 billion productively in 2018.

"The €682 million buy-back, together with our plan to repay €1 billion of expensive debt maturing this year and invest in bolt-on acquisitions, will grow Aviva's earnings, strengthen cashflow and improve debt ratios."

The move comes a day after Aviva pledged to make a €16 million "goodwill payment" to shareholders who lost out when it cancelled €511 million worth of preference shares, before the insurance giant U-turned on the plans.

The group said yesterday that it recognises the "uncertainty" created for preference shareholders and the impact the move had on its reputation, saying the payout is the "right thing" to do.

The goodwill payment will apply to those who sold preference shares between March 8 and March 22.

The FTSE 100 insurer believes fewer than 2,000 individual investors were affected.

The original proposal had drawn criticism from investors and the FCA, although Aviva said it had received legal advice that it could cancel its preference shares at par value.

PA

More on this topic

Public bodies trying to find patterns as figures reveal 'staggering' level of insurance claimsPublic bodies trying to find patterns as figures reveal 'staggering' level of insurance claims

€43m paid out in insurance claims on behalf of 28 local authorities in first nine months of 2019€43m paid out in insurance claims on behalf of 28 local authorities in first nine months of 2019

Probe finds 'cosy relationship between certain solicitors and GPs' encouraging personal injury claimsProbe finds 'cosy relationship between certain solicitors and GPs' encouraging personal injury claims

Ghost broker investigation may lead to cancellation of 600 car insurance policiesGhost broker investigation may lead to cancellation of 600 car insurance policies

More in this Section

Uber launches appeal against London licence refusalUber launches appeal against London licence refusal

Donald Trump announces trade deal to halt new China tariffsDonald Trump announces trade deal to halt new China tariffs

Andrew Lloyd Webber wins tax fight over Barbados villasAndrew Lloyd Webber wins tax fight over Barbados villas

Economy grows 1.7% in third quarter of 2019; GDP up 5% in last 12 monthsEconomy grows 1.7% in third quarter of 2019; GDP up 5% in last 12 months


Lifestyle

Who hasn’t dreamt of cutting ties with the nine-to-five and living off-the-grid?The great escape: What's life like off the grid?

Jazz in Europe these days exists in a highly networked environment of cultural and political bodies, festivals, promoters, musicians and educators.Jazz Connective Festival: Intriguing, exciting and uncompromising

It will be bittersweet for Stormzy that his second album arrives the day the British Labour party was confirmed as suffering a historic general election trouncing.Album review: Stormzy remains a work in progress

Unique drawings by Quentin Blake, one of Britain’s best-loved illustrators, are available at a Christie’s online auction which runs until December 17.Your chance to buy drawings by Roald Dahl illustrator Quentin Blake

More From The Irish Examiner