Aug 10, 2022
Aviva promises share buyback on solvency beat
FTSE 100 insurer Aviva has promised a share buyback funded by better than expected cash generation rather than disposals, months after returning £4.75bn to its shareholders. At its first-half results on Wednesday, Aviva said its Solvency II ratio - the proportion of capital it holds as a percentage of the minimum required - had reached 213 per cent, when adjusted for one-off items, above the 206 per cent average estimated by analysts. Chief executive Amanda Blanc would not be drawn on the size of the offer, due to be launched at the full-year results, but said the company wanted to show investors that it was "More than aware of our commitment to return capital" above a 180 per cent solvency ratio. Aviva's share price rose 8.5 per cent in early trading in London. Ignoring these releases, the reported loss ratio for the period, a measure of claims as a proportion of premiums, was 91.3 per cent, a sharp deterioration from the 72.9 per cent level in the same period last year.
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