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Aviva reinstates dividend, but warns payout policy under review as profit falls 29%

By BFN News | 07:39 AM | Thursday 06 August, 2020


Insurance company Aviva resumed its dividend but said it would review its payout policy after first-half profit was dented by Covid-19 and weather related claims. 'While the board continues to monitor the impact of COVID-19 and the economic outlook, we have decided to take the opportunity to review our longer term dividend policy, in light of our strategic priorities and the future shape of the group, with the objective of a sustainable pay-out and lower levels of debt,' the company said. For the six months ended 30 June, pre-tax profit fell 29% to £1.07bn. Strong results in UK annuities and the continued recovery in its Canadian results were offset by higher weather claims across its general insurance businesses and additional expenditure related to community support initiatives, the company said. Its general insurance business flagged a £165m impact from COVID-19 claims. The solvency II cover ratio fell to 194% from 206% on-year. The company declared a second interim dividend in respect of 2019 of 6p per share. Looking ahead, the company warned uncertainty in the outlook would 'persist in the near term and may mean that growth and profitability targets will be harder to deliver. Story provided by StockMarketWire.com

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