Aviva to return cash to shareholders
The group, which employs 2,000 people at its life and general insurance business in York and 1,500 at its life and health insurance operation in Sheffield, has also upgraded its earnings targets.
Aviva said that it is now targeting higher than 5 per cent annual earnings growth from 2019, as well as bumping up its dividend payout ratio target to between 55 and 60 per cent by 2020.
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Hide AdThe group said: "Aviva's financial and strategic position has been transformed.
"The capital surplus has tripled; the group has been streamlined and Aviva is now focused on markets where it has high-quality franchises and is gaining market share.
"As a result Aviva is upgrading the financial objectives it set out previously."
Aviva has also increased its remittance target from £7bn to £8bn, which will allow the firm to deploy £3bn of excess cash over 2018 and 2019.
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Hide AdThis is expected to be used to repay £900m of debt next year and fund bolt-on acquisitions and additional returns to investors.
CEO Mark Wilson said: "We are upgrading our cash flow and growth targets.
"After a few years of restructuring, our businesses are now high quality and we expect good, sustainable growth from each of them.
"We have improved the consistency and quality of our profits and so we are raising our expectations for earnings growth to more than 5 per cent annually from 2019 onwards."
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Hide AdIn August, Aviva reported a steep rise in first-half profits after it was boosted by its general insurance division.
The insurer said operating profit rose 11 per cent to £1.46bn in the first six months of the year.
Aviva's general insurance and health profits increased 25 per cent to £417m, aided by the acquisition of RBC Insurance in Canada last year, as well as foreign exchange benefits.