Bullish Blanc fights off Aviva takeover chatter

The boss of Aviva has shrugged off discuss that the insurance coverage group is now a takeover goal as overseas predators circle British corporations.

Announcing a share buyback and a better dividend on the again of rising income, chief government Amanda Blanc hailed a ‘significant improvement’ since she took over three years in the past.

And with takeover hypothesis swirling, she stated: ‘The best defence of any organisation is to have a strong performance. 

And that is what you have seen from Aviva. So am I worried about it? No, I am not. Our prospects have never been better.’

Profits enhance: Aviva boss Amanda Blanc hailed a ‘vital enchancment’ since she took over three years in the past

 Her feedback come amid a frenzy of takeover exercise with haulier Wincanton and telecoms testing group Spirent set to fall into US fingers, whereas Currys and Direct Line are additionally attracting consideration from abroad.

Fund managers at JO Hambro Capital Management, a high ten investor in Currys, this week attacked the low-ball approaches by worldwide predators.

Clive Beagles and James Lowen, senior managers on the fund, stated the curiosity in Currys ‘clearly shows the absurdity of UK stock-market valuations’.

Richard Bernstein, boss of activist investor Crystal Amber, has additionally raised alarm bells, saying US patrons particularly ‘understand that they’re buying bargains’.

Aviva is alleged to be within the sights of Italian insurer Generali. Blanc, who turned Aviva’s first feminine chief in 2020 and noticed her pay rise from £5.4million to £6.6million final 12 months, described the hypothesis as ‘largely market chatter’.

It got here as Aviva outlined plans handy £300million again to traders by means of a share buyback and has improved its dividend after a soar in income. 

The FTSE 100 agency advised shareholders group working income rose 9 per cent to £1.47billion in 2023 in contrast with the earlier 12 months.

The improve was aided by sturdy rises in its basic insurance coverage, well being and retirement divisions.

General insurance coverage premiums elevated by 16 per cent to £6.64billion for the 12 months, with a 24 per cent improve in private strains premiums.

The safety and well being enterprise noticed gross sales had been up by 16 per cent amid an improved uptake in medical health insurance.

Retirement gross sales soared by 14 per cent to £7.1billion, which was pushed by elevated bulk buy annuity transactions.

As a results of the improved monetary efficiency, Aviva introduced a share buyback programme to buy £300million in shares from traders.

It additionally confirmed a complete dividend per share of 33.4p for the 12 months. The agency stated it plans to achieve working income of £2billion by 2026.

Blanc stated: ‘Sales are up, costs are down, and operating profit is 9 per cent higher.

‘Our position as the UK’s main diversified insurer, with main companies in Canada and Ireland, is clearly delivering.’

Shares rose 1.6 per cent, or 7.3p, to 462,2p, valuing Aviva at £12.7billion.