Aviva completes share buy-back
PUBLISHED: 09:02 18 September 2018 | UPDATED: 09:54 19 September 2018
Aviva has completed a £600m shares buy-back.
The insurance giant announced the move in May as part of efforts to deploy £2bn of excess capital.
Under the terms of the buy-back Aviva said it purchased 119,491,188 shares at an average price of £5.02 per share.
Its announcement of the buy-back came hot on the heels of a £14m “goodwill payment” for shareholders, who lost out when it cancelled £450m worth of preference shares before making a u-turn on the plans.
The company, which employs 5,000 people in its home city of Norwich, also has plans to spend £900m on debt reduction and £500m on bolt-on acquisitions this year. The figures were first revealed in its annual results in March and confirmed at the time the share buy-back was announced.
Chief executive Mark Wilson said the £2bn of surplus capital was being deployed “productively” and would help to grow Aviva’s earnings.