The Aviva boss Amanda Blanc has seen off Cevian, the activist that had agitated for the insurer to hand back more cash. The insurer cleared the Swedish hedge fund’s £5 billion-plus returns target this year, after selling off eight international businesses.
The next task is convincing more investors that the insurer’s slimmed-down operations can generate the capital needed to sustain generous dividends into the future.
Aviva is starting this year from a position of strength. The Solvency II ratio stood at 193 per cent at the end of March, a way above the golden 180 per cent threshold that signals excess capital. That is after the redemption of another £500 million in tier-two debt; the payment of last year’s final dividend and another £300 million