Aviva (AV.)

[Dod101]

As Jason Windsor says. Avila has great potential. It a.ways has great potential. The question is when is that great potential going to realised?
Dod

Financials appear to be responding positively to the prospect of normalisation of interest rates. Also UK companies (FTSE100) show promising signs of catching up with other markets which they have lagged for many years. Maybe the 'outing' of value is underway.

I don't have a holding in Aviva but have watched with interest since pyad bet the farm on them in the TMF days. I wasn't interested back then but Aviva look much more interesting now so I would be happy enough if they were in my portfolio.

I should clarify that I don't plan to add Aviva (other than as part of UK tracker funds) but I did suggest them as one of about a dozen shares I would buy for a quickly knocked together high-yield portfolio a few weeks ago.

Aviva has yet to prove that it has shaken off its baggage (which many of the other financials do not have) Now that RSA has gone it is about the last of the old dinosaurs of the insurance industry. The new CEO is doing her best to clean it up. We’ll see if she has got it right soon enough. I do not hold and have no intention of doing so

Dod

[idpickering]

Aviva plc 2021 Results Announcement

Amanda Blanc, Group Chief Executive Officer, said:

"2021 was a year of significant strategic progress, right across Aviva. We successfully completed the sale of eight non-core businesses, generating excellent value for our shareholders. Our financial position is strengthened and Aviva is now a much simpler, leaner business, focused on our core markets in the UK, Ireland and Canada.

Today we are announcing a total capital return to shareholders of £4.75bn1, including the existing £1bn share buyback, delivering on our promise to shareholders by returning more than £4bn. We are confident in the future and are setting out plans for further investment to enhance our capabilities and accelerate growth, starting with the acquisition of Succession Wealth, a leading national financial advice firm, which we have announced today.

Our people are central to our success, and it's only right that they share in the value they've helped create. So we are giving each of our 22,000 employees £1,000 in Aviva shares, to say thank you.

The Focus and Strengthen parts of our strategy are complete and we are now wholly focused on accelerating performance. Our trading in 2021 was strong, reinforcing our confidence that Aviva can grow sustainably. Our general insurance volumes are the highest in over a decade, life insurance sales7 grew by 23%, and we are on track to reduce controllable costs4,‡ by £300m by the end of 2022.

The progress we've made in the last year shows Aviva has what it takes to produce attractive and sustainable returns for shareholders. Our performance and progress give us the confidence to announce today an update to our dividend policy, with estimated dividend per share growth of c.40% in 20222,3 to 31.5p, based on the illustrative consolidation ratio.

Aviva has the foundations in place to deliver its promise. We've achieved a lot in the last year but we're only just getting started. There is so much more Aviva can and will deliver for our customers and our shareholders."



Delivering on our promise to shareholders - capital returns and updated dividend policy

• Total shareholder returns of £4.75bn comprising £3.75bn via B Share Scheme announced today1,2 on top of existing £1bn share buyback

• Final dividend per share for 2021 of 14.7p (2020: 14.00p), with total dividend per share for the year up 5% to 22.05p (2020: 21.00p)

• In light of the significant progress we have made, and our confidence in the outlook for Aviva, we are announcing clear guidance on dividends for the next two financial years2,3:

◦ For 2022 we estimate we will be able to pay a dividend of approximately £870m. Following the proposed B Share Scheme and share consolidation announced today, this would be equivalent to an illustrative per share amount of c.31.5p, an increase of c.40% on 20212,3

◦ For 2023 we estimate we will be able to pay a dividend of approximately £915m, growth of 5% giving an illustrative 33p per share2,3

• Thereafter we expect low-to-mid single digit growth in dividend per share. These cash dividends represent an attractive payout level from long-term, sustainable cash and capital, underpinned by our upgraded cash remittance target5

• Surplus capital above target levels is available for investment in the business or return to shareholders over time

And later;

Dividend

Today we have announced a final dividend per share for 2021 of 14.7 pence (2020: 14.0 pence).Together with an interim of 7.35 pence (2020: 7.0 pence) this brings total dividends for the year to 22.05 pence (2020: 21.00 pence), up 5% with a cash cost of c.£831 million.

https://www.investegate.co.uk/aviva-plc ... 00072979D/

[Dod101]

Thanks Ian. What they have done of course is emphasised the cash resulting from the sale of businesses last year and then sprayed the resulting cash at shareholders in the form of buybacks and a promise of improved dividends. Profit, even taking out the discontinued businesses, is down 10%. We will see how they do this year as it may well be a better reflection of where they are going from here. I would not be tempted to buy.

Dod

[monabri]

Not waiting THAT long! (Share growth 20222,3).

[scrumpyjack]

Well the profit will be spread over 25% fewer shares next year.

At least they are doing the 100p cash return to shareholders by a B share scheme, rather than a dividend.

[monabri]

How would this play out on completing a tax return form (non ISA)?

[Dod101]

How would this play out on completing a tax return form (non ISA)?

They are to issue full details on or around 4 April according to their website but they seem to be intending to issue bonus shares and then buy the bonus share back at £1 each. I thought that sort of thing had been outlawed but it seems not. There will also be a share consolidation so shareholders are getting a bit of financial engineering but await details it would seem.

Dod

[scrumpyjack]

How would this play out on completing a tax return form (non ISA)?

They are to issue full details on or around 4 April according to their website but they seem to be intending to issue bonus shares and then buy the bonus share back at £1 each. I thought that sort of thing had been outlawed but it seems not. There will also be a share consolidation so shareholders are getting a bit of financial engineering but await details it would seem.

Dod

It has only been 'outlawed' when they give you a choice between taking it as capital or income. If they do that, it is taxed as income whatever you choose.

If there is no choice, it is an effective way of making a capital distribution. It will then be taxed as a part disposal of your holding subject to CGT if applicable.

[Dod101]

How would this play out on completing a tax return form (non ISA)?

They are to issue full details on or around 4 April according to their website but they seem to be intending to issue bonus shares and then buy the bonus share back at £1 each. I thought that sort of thing had been outlawed but it seems not. There will also be a share consolidation so shareholders are getting a bit of financial engineering but await details it would seem.

Dod

It has only been 'outlawed' when they give you a choice between taking it as capital or income. If they do that, it is taxed as income whatever you choose.

If there is no choice, it is an effective way of making a capital distribution. It will then be taxed as a part disposal of your holding subject to CGT if applicable.

Interesting thank you. It does not affect me but I did not know that so the shareholder no longer has any option. That I guess is fair enough.

Dod

[monabri]

Aviva CEO buys >£500k of shares (07/03/22)

https://www.investegate.co.uk/aviva-plc ... 00079209D/

[idpickering]

Aviva has successfully completed its £1.0bn share buyback programme.

Aviva plc ("Aviva") announces that it has successfully completed its share buyback programme (the "Programme") which was notified to the market on 12 August 2021 and increased and extended on 16 December 2021.

As a result of the Programme, Aviva acquired 245,225,489 shares at an average price of 408p per share.

As at close of business on 31 March 2022, Aviva had 3,693,570,958 issued ordinary shares of 25p each admitted to trading, 6,249,035 of which are pending cancellation under the Programme. Aviva does not hold any ordinary shares in treasury and therefore, net of shares pending cancellation, Aviva has 3,687,321,923 issued ordinary shares of 25p each admitted to trading.

https://www.investegate.co.uk/aviva-plc ... 00078595G/

[monabri]

"Successfully "..? They've completed a buyback but what makes it " successful "?

[Bouleversee]

Aviva has successfully completed its £1.0bn share buyback programme.

Aviva plc ("Aviva") announces that it has successfully completed its share buyback programme (the "Programme") which was notified to the market on 12 August 2021 and increased and extended on 16 December 2021.

As a result of the Programme, Aviva acquired 245,225,489 shares at an average price of 408p per share.

As at close of business on 31 March 2022, Aviva had 3,693,570,958 issued ordinary shares of 25p each admitted to trading, 6,249,035 of which are pending cancellation under the Programme. Aviva does not hold any ordinary shares in treasury and therefore, net of shares pending cancellation, Aviva has 3,687,321,923 issued ordinary shares of 25p each admitted to trading.

https://www.investegate.co.uk/aviva-plc ... 00078595G/

I don't understand this. Does that mean that they are trading a large no. of the company's shares? Is that normal? I thought that the purpose of buying back shares was to cancel them and thereby enhance the value of remaining holdings. Are they hoping the previous owners will buy some back at more than they sold them for or just to find new suckers? I see the s.p. is 40p more than the average price they paid over the whole buy bac programme so I suppose so far, so good and maybe if they sit on them for a while they will make money. We'll have to wait and see. I can't say I'm motivated to add personally.

[Dod101]

Aviva has successfully completed its £1.0bn share buyback programme.

Aviva plc ("Aviva") announces that it has successfully completed its share buyback programme (the "Programme") which was notified to the market on 12 August 2021 and increased and extended on 16 December 2021.

As a result of the Programme, Aviva acquired 245,225,489 shares at an average price of 408p per share.

As at close of business on 31 March 2022, Aviva had 3,693,570,958 issued ordinary shares of 25p each admitted to trading, 6,249,035 of which are pending cancellation under the Programme. Aviva does not hold any ordinary shares in treasury and therefore, net of shares pending cancellation, Aviva has 3,687,321,923 issued ordinary shares of 25p each admitted to trading.

https://www.investegate.co.uk/aviva-plc ... 00078595G/

I don't understand this. Does that mean that they are trading a large no. of the company's shares? Is that normal? I thought that the purpose of buying back shares was to cancel them and thereby enhance the value of remaining holdings. Are they hoping the previous owners will buy some back at more than they sold them for or just to find new suckers? I see the s.p. is 40p more than the average price they paid over the whole buy bac programme so I suppose so far, so good and maybe if they sit on them for a while they will make money. We'll have to wait and see. I can't say I'm motivated to add personally.

No no. Of the 3,693,570,958 shares in issue, they are telling us that have bought back 6,249,035 and are about to cancel these, so that they will have 3,687,321,923 shares after that cancellation. Nothing to worry about and really their message is really just a technicality. Maybe the fact that they are quoted at 40p over their average buying price is a result of the buyback but probably it is just because they got their timing reasonably good.

Dod

[Bouleversee]

Well, this is what was said, Dod: "As a result of the Programme, Aviva acquired 245,225,489 shares at an average price of 408p per share." Only 6,249,035 are currently pending cancellation.

[Dod101]

Well, this is what was said, Dod: "As a result of the Programme, Aviva acquired 245,225,489 shares at an average price of 408p per share." Only 6,249,035 are currently pending cancellation.

Presumably they have cancelled the others already. I think it is a technicality though.

Dod

[idpickering]

Aviva appoints Charlotte Jones as Chief Financial Officer.

Aviva plc ("Aviva" or the "Company") has appointed Charlotte Jones as Chief Financial Officer and Executive Director with effect from 5 September 2022. Charlotte was previously Chief Financial Officer of RSA Insurance plc and Interim Chief Executive Officer of the RSA UK & International business.

Charlotte has enjoyed a highly successful career in financial services including as CFO of Jupiter Fund Management plc, where she was the member of the Board and Executive Committee with responsibility for finance and corporate strategy. Before that she was Head of Group Finance at Credit Suisse Group and Deputy Group CFO at Deutsche Bank Group. She started her career at EY.

https://www.investegate.co.uk/aviva-plc ... 00091085H/

[daveh]

Circular for the return of capital is now out:

https://www.investegate.co.uk/aviva-plc ... 00062324H/

Publication of Circular relating to return of capital to Shareholders and containing notice of General Meeting

As previously announced on Wednesday 2 March 2022 (the "2 March Announcement"), Aviva plc ("Aviva" or the "Company") intends to return £3.75 billion to the holders of its ordinary shares (the "Shareholders") and holders of American depositary shares representing ordinary shares ("ADSs"). This is in addition to the £1 billion share buyback which was completed on 31 March 2022.

The Company intends to implement this return of capital through the issue of a new class of redeemable B shares which the Company expects to redeem in cash for 101.69[1] pence per ordinary share (the "B Share Scheme"). The B Share Scheme will be accompanied by a 76 for 100 share consolidation of the Company's existing ordinary share capital and an equivalent consolidation of the ADSs (the "Share Consolidation"). The B Share Scheme and Share Consolidation are subject to the approval of the Shareholders and the holders of ADSs and, accordingly, the following documentation has been published on the specified Aviva website and will (as applicable, depending on mailing preferences) shortly be posted to the Shareholders:

· an explanatory circular regarding the B Share Scheme and the Share Consolidation, and containing a notice of general meeting of the Company (the "Circular") (www.aviva.com/return-of-capital);

· the form of proxy for use at the general meeting (www.aviva.com/agm); and

· a question and answer document regarding the B Share Scheme and the Share Consolidation (www.aviva.com/return-of-capital).

and

By way of reminder:

· in the Company's results announcement on Wednesday 2 March 2022 (the "Results Announcement") and the 2 March Announcement (together the "Announcements") the estimated proceeds from the B Share Scheme of approximately 100 pence per existing ordinary share were for illustrative and indicative purposes only and, subject to unforeseen events, the expected proceeds per existing ordinary share will be as set out above (and not on the basis of that earlier illustrative amount);

· the consolidation ratio included in the Announcements was for illustrative purposes only. The Share Consolidation will proceed on the basis described in this announcement (and not on the basis of that earlier illustrative ratio). The ratio applied in respect of the Share Consolidation is subject to ongoing review and may change, to ensure that the correct ratio is applied in order to maintain comparability as intended;

· the proposed final dividend for 2021, which is to be put to Shareholders at the Company's 2022 annual general meeting, is 14.70 pence per existing ordinary share in the Company , payable on or around 19 May 2022 to Shareholders named on the Company's register of members as at the close of business on Friday 8 April 2022; and

· for reference only, on the basis of the Share Consolidation ratio, if the Company were (in line with the updated dividend policy announced in the Company's Results Announcement) to pay: (i) a dividend for the financial year ended 31 December 2022 of approximately £870 million, such dividend would be equivalent to approximately 31.0 pence per New Ordinary Share, an increase of approximately 40 per cent. from the 2021 dividend per share, and/or (ii) a dividend for the financial year ended 31 December 2023 of approximately £915 million, such dividend would be equivalent to approximately 32.5 pence per New Ordinary Share and growth of approximately 5 per cent. on the dividend for the financial year ended 31 December 2022 as set out above. These remain estimated dividends which are for guidance and subject to change. The Board has not approved or made any decision to pay any dividend in respect of any future period. For the avoidance of doubt, the estimated dividend figures published in the Results Announcement were calculated based on the illustrative Share Consolidation ratio published in the Results Announcement and, subject to unforeseen events, the Share Consolidation will proceed on the basis of the ratio described in this announcement (and not on the basis of that earlier illustrative ratio).

Timetable and settlement

The record time for entitlement to the B shares and the Share Consolidation will be 6pm (London time) on Friday 13 May 2022 in respect of the existing ordinary shares. The B shares are expected to be issued on Monday 16 May 2022, and the Share Consolidation will occur on the same date. The redemption and cancellation of the B shares is expected to occur on Tuesday 17 May 2022.

The circular (p35) says that this will be a capital event and CGT will apply. They say they will put a "A worked example with details of the respective values will be made available on the Company's website shortly after the implementation of the B Share Scheme and Share Consolidation"

[tjh290633]

See the caveat in Note [1] at the end of the RNS:

[1] If, at the Record Time, the number of ordinary shares in issue multiplied by the expected redemption amount per ordinary share would result in a return in excess of £3.75 billion, then the redemption amount payable by reference to each ordinary share may be subject to a downward adjustment at the discretion of the board of directors of the Company.

TJH

[absolutezero]

Yuk.
Like Tate and Lyle.
I hate these things.