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Aviva posts £3.1bn loss and slashes dividend
by Alex Steger on Mar 07, 2013 at 07:42
‘In the circumstances... we have taken the difficult decision to reduce the dividend to a level that can be cash covered in 2014 and to enhance the availability of resources for important long-term structural requirements.
‘I regret this has become necessary, but can assure shareholders we took this decision only after examining scrupulously all alternatives.’
Aviva’s UK life and pension business saw operating profit fall 3% from £917 million in 2011 to £887 million in 2012.
The value of new business was up at £420 million compared to £380 million the year before, although the long-term sales, including investment sales were down from £12.9 billion in 2011 to £12.1 in 2012.
Excluding bulk purchase annuities, long-term sales were up at £11.9 billion, which Aviva said was down to strong performance in annuities, equity release and protection, which helped offset a reduction in bond sales.
Aviva said it welcomed the retail distribution review, auto-enrolment, and the Financial Services Authority’s thematic review of the annuity market.
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