Life affirming

5 March 2015 By George Hay Follow @gfhay

The UK insurer’s 2014 results showed rising excess cash from operations. That’s reassuring, given tricky times for the sector and a 21 pct dividend hike. While the integration of Friends Life is a risk, Aviva doesn’t look to be doing the deal to cover up operating weakness.

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Aviva Chief Executive Mark Wilson cautioned on March 5 that the UK insurer’s turnaround was still closer to its beginning than its end, despite the group delivering well-received annual results.

The company increased the annual dividend by 21 percent to 18.1 pence.

Cash remittances from group operations rose 11 percent to 1.4 billion pounds, while holding company excess cashflow – remittances after costs including debt financing – rose 65 percent to 692 million pounds.

The shareholder vote for Aviva’s proposed acquisition of Friends Life is due to take place on March 26.

As of 1200 GMT on March 5, Aviva shares had risen 6.1 percent to 565 pence.

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