Aviva cuts policies payout

Life and pensions giant Aviva said today that it was slashing a £1bn (€1.10bn) payout promised to a million policyholders last year following the stock market turmoil.

The insurance group confirmed the original offer announced in July was “no longer fair to both policyholders and shareholders” after sharp falls in the value of equities.

It had originally hoped to pay eligible policyholders this summer, with more than 700,000 people due to get between £400 (€443) and £1,000 (€1,100), while another 220,000 were in line for £1,000 (€1,100) to £3,500 (€3,879).

The news came as Aviva – parent group of Hibernian, recently rebranded Hibernian Aviva – reported full-year sales figures revealing a 1% rise in new UK business.