Throwing cash back at shareholders is an easy way to placate them but lowly-rated Aviva needs to do more to redeem itself in the eyes of investors.
The £4 billion intended to be distributed to shareholders by the middle of next year is more than some analysts had expected and it starts with a share buyback of up to £750 million. A tight timetable means both share buybacks and special dividends are on the table for returning more of that cash.
That’s less than the £5 billion pushed for last month by Cevian, the activist investor, which has built a stake of just under 5 per cent in the insurer. But in a sector where stocks are synonymous with delivering beefy income, investors were willing
