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Aviva 2020 PRELIMINARY RESULTS ANNOUNCEMENT

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idpickering
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Aviva 2020 PRELIMINARY RESULTS ANNOUNCEMENT

#392071

Postby idpickering » March 4th, 2021, 7:11 am

Resilient financial performance
• Operating profit1,‡# of £3,161m (2019: £3,184m) and IFRS profit for the year of £2,910m (2019: £2,663m)
• Core business unit operating profit1,‡# of £2,492m (2019: £2,558m)
• Cash remittances‡# of £1,500m (2019: £2,597m)
• Core business cash remittances‡# of £1,359m (2019: £1,409m excluding UK Life special remittance)
Sales of Aviva France and Aviva Italy in 2021 – major progress in our strategic transformation
• On completion will significantly strengthen capital and liquidity: excess capital by c.£3.0bn and centre cash by c.£3.9bn
• Build on announced sales of Singapore, Vietnam, Hong Kong, Indonesia and Turkey
Robust financial strength
• Solvency II shareholder cover ratio‡# of 202% (2019: 206%) and centre liquidity‡ of £4.1bn (2019: £2.4bn)
• Solvency II debt leverage ratio‡ of 31% (2019: 31%)
Delivering against our capital framework
• Expect £1.7bn debt reduction in H1 2021 including £800m tender offer announced today
• Investing for cash generative growth in our Core markets
• Expect to return to shareholders excess capital above 180% Solvency II shareholder cover ratio‡#
• Total dividend of 21p (2019: 15.5p per share) with a final proposed dividend of 14p per share
Targeting sustainable growth across the UK, Ireland and Canada
• Momentum with record trading in Savings & Retirement, BPA and Group Protection
• New cumulative cash remittance‡# target of over £5bn between 2021-23 with guidance for £1.8bn in 2023
• First major insurer globally to target Net Zero greenhouse emission status by 2040

And later on dividends;

On 21 January 2021, an interim dividend of 7.00 pence per ordinary share was paid in respect of the 2020 financial year, amounting to
£275 million, and will be accounted for as an appropriation of retained earnings in the year ending 31 December 2021. In respect of the 2019
financial year, two interim dividends were paid: 9.50 pence per ordinary share, amounting to £372 million, on 26 September 2019, accounted
for as an appropriation of retained earnings in the year ended 31 December 2019, and a second payment of 6.00 pence per ordinary share,
amounting to £236 million, on 24 September 2020, accounted for as an appropriation of retained earnings in the year ended
31 December 2020.
Subsequent to 31 December 2020, the directors proposed a final dividend for 2020 of 14 pence per ordinary share, amounting to £550 million
in total. Subject to approval by shareholders at the AGM, the dividend will be paid on 14 May 2021 and will be accounted for as an
appropriation of retained earnings in the year ending 31 December 2021. Subsequent to 31 December 2019, the directors agreed a final
dividend for 2019 of 21.40 pence per ordinary share, amounting to £839 million. On 8 April 2020 the Group announced that the Board of
Directors had agreed to withdraw this recommendation.
On 23 June 2020, notification was given that the Group would redeem the 5.9021% £500 million DCI at its principal amount together with
accrued interest to (but excluding) 27 July 2020, the date on which the DCI was redeemed. Interest payable up to 23 June 2020 has been
recorded as an appropriation of retained profits with the remaining interest payable from 24 June 2020 until the redemption date recorded
within profit before tax attributable to shareholders’ profits. In prior periods, the interest on the DCI and tier 1 notes was treated as an
appropriation of retained profits and, accordingly, accounted for when paid.



Full item downloadable here;

https://www.aviva.com/investors/results/

Breelander
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Re: Aviva 2020 PRELIMINARY RESULTS ANNOUNCEMENT

#392102

Postby Breelander » March 4th, 2021, 8:53 am

And the dates are given here...
14p Final dividend
14/05/21 Payment date
09/04/21 Record date
08/04/21 Ex-dividend date
https://www.aviva.com/investors/dividends/

csearle
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Re: Aviva 2020 PRELIMINARY RESULTS ANNOUNCEMENT

#392525

Postby csearle » March 4th, 2021, 11:06 pm

Breelander wrote:And the dates are given here...
14p Final dividend
14/05/21 Payment date
09/04/21 Record date
08/04/21 Ex-dividend date
https://www.aviva.com/investors/dividends/
Thanks Bree for taking the time to extract the salient information and ignore the dross. Regards, Chris.

scrumpyjack
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Re: Aviva 2020 PRELIMINARY RESULTS ANNOUNCEMENT

#392667

Postby scrumpyjack » March 5th, 2021, 11:08 am

Perhaps Aviva is almost becoming investable again? It has been a serial disappointer for so many years (decades in fact) but Amanda Blanc finally seems to be taking the bull by the horns and sorting it out. The shares sell at less than half embedded value but she is selling off overseas operations at prices near to embedded value and then using some of the proceeds, hopefully, to buy back shares at their current low value. If the remaining businesses are the good ones (and I don't know if that is so) then it could have turned the corner finally.

Previous CEOs never had the cojones to sort out the conglomerate mess that had resulted in todays SP being about one third of what of what it was 20 years ago, and a cycle of dividends cut then slowly increasing then cut again.

Maybe this time it finally is different? The market does not seem convinced yet, but who knows?

Dod101
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Re: Aviva 2020 PRELIMINARY RESULTS ANNOUNCEMENT

#392669

Postby Dod101 » March 5th, 2021, 11:19 am

I appreciate your comments scrumpyjack and I wish the new CEO every success but I will not be buying. Inevitably it still has a lot of baggage from the amalgamations over many years. It can be done. Stephen Hester more or less managed it with RSA (now being sold and broken up of course). That would probably be the best end result for Aviva as well.

Dod

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Re: Aviva 2020 PRELIMINARY RESULTS ANNOUNCEMENT

#420506

Postby YeeWo » June 18th, 2021, 2:39 pm

- A business that issues DRIP rather than SCRIP options as a dividend always appeals.
- The Demographics of the UK market seems to play to simplified Aviva's strengths.
- Amanda Blanc is returning the business to core leadership markets.
- Departure of "Star Fund Manager" David Cummings seems a rational way to address cost base.
- Cevian Capital acquiring 5% of Aviva is a significant expression of faith.

- As I type Aviva is 411p, 3/5 years from now I forecast the SP will be either significantly higher through either a business that is firing on cylinders having addressed it's capital and cost base OR the SP will be driven significantly higher as an acquirer buys Aviva as a fill-in to it's global network.


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