Aviva in £300m share buyback as FY profits rise 9%

7th Mar 2024 07:44

(Sharecast News) - UK insurance giant Aviva on Thursday unveiled a £300m share buyback and better-than-expected 9% rise in full-year earnings on a strong increase in general insurance premiums.

Operating profit increase to £1.47bn, compared with forecasts of £1.43bn. General Insurance premiums were up 13% to £10.8bn.

Aviva added that it was setting a new target for operating profit of £2bn by 2026. The dividend was lifted 8% to 33.4p a share with renewed guidance of growth in the cash cost by mid-single digits.

The private health insurance business also increased sales by 41% as people looked to avoid long waits on National Health Service lists.

Chief executive Amanda Blanc dismissed market speculation about a takeover for the company as "largely market chatter".

There were reports last year that Allianz, Intact Financial and Tyrg were interested in buying Aviva, pushing up the share price. More recently it has been reportedly in the sights of Italian insurer Generali.

Reporting by Frank Prenesti for Sharecast.com