Aviva reports dip in profits

BRITAIN’S largest insurer Aviva reported a drop in profit yesterday, cut its dividend as expected but reassured about future payments a day after rival Prudential abandoned its pledge to keep raising its payout.

Aviva had already prepared shareholders at the time of its 2001 results for a deep cut in the 2002 dividend payment. Chief executive Richard Harvey told CNBC television that the company was robust about its dividend position.

While the company refused to give a definite target for dividend payments Aviva gave a rough guide of a 5% increase for this year, although Mr. Harvey told reporters that was dependent on earnings. Aviva’s shares rose largely on relief that the results had not contained any nasty surprises.