<!–
<!–
<!– <!–
<!–
<!–
<!–
Aviva’s boss has played down rumors that the insurance group is now a takeover target as foreign predators surround British firms.
Announcing a share buyback and higher dividend on the back of rising profits, chief executive Amanda Blanc hailed a “significant improvement” since she took over three years ago.
And in response to speculation about takeovers, he said: ‘The best defense for any organization is to perform well.
And that’s what you’ve seen in Aviva. So am I worried about that? No, I’m not. Our prospects have never been better.”
Profit rise: Aviva boss Amanda Blanc hailed ‘significant improvement’ since taking charge three years ago
His comments come amid a flurry of acquisition activity with carrier Wincanton and telecoms testing group Spirent set to fall into American hands, while Currys and Direct Line are also attracting overseas attention.
Fund managers at JO Hambro Capital Management, one of Currys’ top ten investors, this week attacked the quiet approaches of international predators.
Clive Beagles and James Lowen, senior managers at the fund, said the interest in Currys “clearly shows the absurdity of UK stock market valuations”.
Richard Bernstein, head of activist investor Crystal Amber, has also sounded the alarm, saying that American buyers in particular “understand that they are getting bargains.”
Aviva is said to be in the sights of Italian insurer Generali. Blanc, who became Aviva’s first boss in 2020 and saw her salary rise from £5.4m to £6.6m last year, described the speculation as “very much market talk”.
It came as Aviva outlined plans to return £300m to investors through a share buyback and boosted its dividend after a rise in profits.
The FTSE 100 firm said the shareholder group’s operating profits rose 9 per cent to £1.47 billion in 2023 compared to the previous year.
The increase was helped by strong increases in its general insurance, health and retirement divisions.
General insurance premiums rose 16 per cent to £6.64bn over the year, with personal lines premiums up 24 per cent.
The health and protection business recorded a 16 percent sales increase amid greater uptake in health insurance.
Superannuation sales soared 14 per cent to £7.1bn, boosted by a rise in bulk annuity purchase transactions.
As a result of improved financial performance, Aviva announced a share buyback program to buy £300m of 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.
Blanc said: ‘Sales are up, costs are down and operating profit is 9 per cent higher.
“Our position as the UK’s leading diversified insurer, with significant businesses in Canada and Ireland, is clearly paying off.”
The shares rose 1.6 per cent, or 7.3p, to 462.2p, valuing Aviva at £12.7bn.