British insurer Aviva leaves door open to return more capital

Individuals enter and exit the AVIVA headquarters building in Dublin October 19, 2011. REUTERS/Cathal McNaughton

LONDON, May well 18 (Reuters) – Aviva (AV.L) might be ready to give extra hard cash back to shareholders, its chief government stated on Wednesday, as the British insurance company documented a 5% raise in general insurance coverage profits in the very first quarter and explained its money place was robust.

Aviva’s Solvency II ratio, a key measure of capital power, came in at 198%. A degree of 100% is considered by regulators the absolute minimum which insurers must hold.

“We have explained that we will hold a very clear dedication that any excessive cash over the 180% solvency ratio that we don’t reinvest in the organization to crank out extra value will be returned to shareholders more than time,” CEO Amanda Blanc told Reuters.

“We will never keep excess funds where by we can not place it to excellent use in the business.”

Aviva’s shares ended up up .64% at 0734 GMT, outperforming the FTSE 100.

Aviva is less than tension from activist trader Cevian Cash, which retains 6% of the insurer’s shares, to return additional money to shareholders.

The home, motor and lifetime insurance company has now supplied 4.75 billion lbs ($5.9 billion) again to buyers immediately after boosting 7.5 billion kilos following a string of disposals close to the world considering the fact that Blanc was appointed chief executive in July 2020.

Aviva, which has key organizations in Britain, Canada and Eire, also claimed in March it would strengthen its dividend this yr and next, though Cevian reported the insurer could do additional. examine extra

Aviva reported on Wednesday it was on track to satisfy fiscal targets which it lifted in March, together with price savings of 750 million kilos gross of inflation across 2018-24.

Basic insurance policies gross penned premiums rose to a document 2.1 billion lbs . in the very first quarter, whilst gross sales in the insurer’s life business enterprise rose 1% to 8.7 billion kilos.

Fund management unit Aviva Traders noticed external web outflows of 200 million kilos, having said that, which it stated mirrored risky sector circumstances. Belongings underneath administration totalled 253 billion kilos at the conclusion of March, a 5% drop on the quarter.

Jefferies analysts reported the effects showed there was “promising progress in pockets of the business”, reiterating their “keep” score on the inventory.

($1 = .8063 kilos)

Reporting by Carolyn Cohn, modifying by Sinead Cruise

Our Expectations: The Thomson Reuters Trust Rules.