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Aviva (LON: AV) said on Thursday that it was on pace to return at least 4 billion pounds ($5.41 billion) to shareholders and achieve or exceed cost-cutting targets, despite pressure from activist investor Cevian to increase payouts.
Following a recent wave of overseas disposals, Cevian purchased a 5% interest in Aviva this year and expects the insurer to return 5 billion pounds in capital to shareholders by the end of 2022.
Aviva announced in August that it will return 4 billion pounds to shareholders, an amount that Cevian deemed insufficient.
Aviva said on Thursday that it had completed 450 million pounds of a 750 million pound share purchase and was on track to meet a 300 million pound savings objective in 2022, compared to a 2018 baseline.
Cevian also stated that the insurer has room for more cost-cutting measures totaling at least 500 million pounds by 2023. “We expect the good trading momentum to continue in the fourth quarter, and we remain on track to meet or exceed our cash and cost saving targets,” chief executive Amanda Blanc said in a statement.
Net flows into Aviva’s savings and retirement business rose a record 21% in the first nine months of the year, and general insurance premiums rose 5%, it said.
Story by : Norvisi Mawunyegah