Aviva informs its institutional shareholders in private meetings that it will not make any acquisitions in the near future
Aviva has told its institutional shareholders in private meetings that they will not make any acquisitions in the near future, The Mail on Sunday has learned.
Insurance giant FTSE 100 told a top 20 investor it will focus on completing underperforming weapons sales and growing its UK, Irish and Canadian businesses.
The investor said, “They were quick to point out that they were not planning any acquisitions at this point as they were still in the divestment phase.”
Focus: Aviva told a top 20 investor it would focus on completing underperforming weapons sales and growing its UK, Irish and Canadian businesses
The review of Aviva’s finances has intensified since it became known in June that activist investor Cevian Capital, one of Europe’s biggest activists, had acquired a stake in the company. A source close to Aviva said there were no near-term plans for acquisitions, but “there is an opportunity in the future.”
CEO Amanda Blanc said last month that investments in the business “will be both organic and potentially through strategic add-on acquisitions”.
Cevian urges Aviva to turn over £ 5 billion to shareholders, cut costs by £ 500 million and increase annual dividend to 45p.
Aviva said last month that it will return at least £ 4 billion by next summer – and has begun buying back £ 750 million of shares. It has sold £ 7.5 billion worth of under blanc to businesses around the world.
Niko Pakalen, partner at Cevian, said at the time that it was a “good start”, but “not enough on its own”.
Aviva declined to comment.