6 July 2016 Insurance

Aviva updates targets

Aviva is increasing its payout ratio target as part of a performance update to investors.

"A sustainable and growing dividend is paramount and we plan to increase the payout ratio to 50 percent in 2017," group chief executive officer Mark Wilson, said.

The provider of life insurance, general insurance, health insurance and asset management has been raising its dividend payout ratio in recent years, lifting it to 42 percent in 2015 from a restated 34 percent in 2013.

"Aviva’s fundamentals are sound. Our balance sheet is strong and resilient and we are a simpler, focused group with excellent franchises. This is a strong foundation from which to grow profits, cash-flow and dividends over the coming years. Although it is too early to quantify the precise impact of Brexit, we are confident we can continue to grow,” Wilson noted.

Aviva expects its IFRS operating profit to grow at mid-single digit in the medium term. Its cumulative business unit remittances are expected at £7 billion between 2016 and 2018.

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