New Aviva chief slashes dividend as he continues drive to overhaul insurer
Sunday 04 August 2013
Aviva boss Mark Wilson will this week update investors on the progress he is making overhauling the insurance giant.
The 46-year-old Kiwi, who joined the FTSE 100 company at the start of the year, is set to lower Aviva's dividend by 44 per cent to 5.6p, in line with the previous cut he made at its full-year results in March. The move is expected across the City and crucially by investors, who say they have been impressed by Mr Wilson since he took over.
Aviva ousted its former chief executive, Andrew Moss, last year following an embarrasing pay revolt at its AGM in May 2012.
Since then, the group has offloaded non-core businesses and looked to boost its capital. In March, the company posted a £3bn loss, slashed its dividend and scrapped bonuses for senior directors.
Its loss compared with a £60m profit in 2011 and came after writing off £3.3bn on the sale of its US business to Athene Holding in December.
At the time, Mr Wilson said it had "not lived up to its potential" and had "disappointed shareholders" over the past few years.
Analysts expect the company to make an operating profit of about £946m, down about 5 per cent year-on-year, when it reports on Thursday.
Barrie Cornes, of Panmure Gordon, said: " It would appear that Aviva is making steady progress in rebuilding investor confidence with the realistic approach being taken by Mark Wilson and the emphasis on cash and repaying debt.
"We welcome the back-to-basics approach being taken by the new management team but remain cautious given the size of the task ahead."
- 1 I've been called an abusive and dangerous parent, when all I did was listen to my transgender child
- 2 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 3 Teaching profession headed for crisis as numbers continue to drop and working lives become 'unbearable'
- 4 The most powerful passports in the world
- 5 Chinese student carries disabled friend to school every day for three years
Nepal earthquake: How you can help victims of the Kathmandu disaster
Nepal earthquake in pictures: Photos show devastation caused by 7.8 magnitude earthquake
Royal baby: Live updates as superbug closes ward at St Mary's Hospital in London where Duchess of Cambridge is due to give birth
Teaching profession headed for crisis as numbers continue to drop and working lives become 'unbearable'
General Election 2015: The photo of a tree that proves the Tories have an image problem
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...