Aviva launches £300m share buyback after profits jump
Group chief executive Amanda Blanc said the business ‘made significant progress’ last year.
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Your support makes all the difference.Aviva is to hand £300 million back to investors through a share buyback and has improved its dividend after a jump in profits.
The insurance and pensions giant saw shares move higher on Thursday morning as a result.
Group chief executive Amanda Blanc said the business “made significant progress” last year.
The FTSE 100 firm told shareholders that group operating profits increased by 9% to £1.47 billion in 2023 compared with the previous year.
The increase was aided by strong rises in its general insurance, health and retirement divisions.
General insurance premiums increased by 16% to £6.64 billion for the year, with a 24% increase in personal lines premiums.
Aviva added that its protection and health business saw sales grow 16% amid improved uptake in health insurance.
Retirement sales increased by 14% to £7.09 billion, driven by increased bulk purchase annuity transactions.
As a result of the improved financial performance, Aviva announced a share buyback programme to purchase £300 million in shares from investors.
It also confirmed a total dividend per share of 33.4p for the year.
The company said it plans to reach operating profits of £2 billion by 2026.
Ms Blanc said: “Sales are up, costs are down, and operating profit is 9% higher. Our position as the UK’s leading diversified insurer, with major businesses in Canada and Ireland, is clearly delivering.
“Our prospects have never been better.
“We have leading businesses in growing markets, a fantastic brand, and we are investing substantially to make service better for our 19 million customers.”
Insurance sector rival Admiral also posted a rise in profits.
It said pre-tax profits increased by 23% to £442.8 million for the year after a jump in turnover.
As a result, it said more than 10,000 workers would receive up to £3,600 in free share awards for the year.