Aviva Plc ( OTCPK:AIVAF ) expects to return more capital to its shareholders through a new stock buyback program, once its full-year 2022 results are in, the U.K.-based insurer and investment company said Wednesday when it reported first-half 2022 earnings.
"We are increasingly confident in Aviva's prospects and anticipate commencing additional returns of capital to shareholders with our 2022 full year results," CEO Amanda Blanc said.
The company will determine the size of the new buyback at year end and "will take account of the financial position at the that time, as well as both the drivers of the capital surplus (including the impact of market movements) and our preference to return surplus capital regularly and sustainably," the company said.
Aviva's ( OTCPK:AIVAF ) H1 operating increased 14% Y/Y to £829M.
General insurance gross written premiums increased 6% to £4.69B. Combined operating ratio of 94.0% improved from 91.6% in the same period a year ago.
U.K. & Ireland Life sales increased 4% Y/Y to £16.8B.
Solvency II return on equity was 10.9% for H1 vs. 7.4% a year earlier.
The firm also declared an interim dividend of 10.3 pence, in line with its dividend guidance for 2022.
Cevian Capital, an activist investor, had called on Aviva ( OTCPK:AIVAF ) to return £5B to shareholders by the end of 2022, Reuters reported .
Blanc was named CEO in July 2020, after serving as a director.
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Aviva Plc to return more capital to shareholders through new stock buyback