AVIVA PLC 2018 INTERIM RESULTS ANNOUNCEMENT

[idpickering]

Part 1 of 4

Mark Wilson, Group Chief Executive Officer, said:

Aviva has grown operating earnings per share by 4% and increased the dividend by 10%.

The 10% increase in the interim dividend is our fourth consecutive half-year of double digit dividend growth and further proof of Aviva's progress.

During these choppy market conditions, it is reassuring that Aviva's results are consistent, dependable and growing.

Aviva remains financially strong with a capital surplus of £11 billion. In the first half of 2018, we started a £600 million share buy-back and paid off €500 million of expensive debt.

We remain on track to achieve our financial targets.


Profit

· Operating EPS up 4% to 26.8 pence (HY17: 25.8 pence)

· Operating profit‡,#,1 down 2% to £1,438 million (HY17: £1,465 million). Excluding disposals, operating profit rose 4% to £1,421 million (HY17: £1,365 million)

· IFRS profit after tax £376 million (HY17: £716 million)


Dividend

· Interim dividend per share up 10% to 9.25 pence (HY17: 8.40 pence)


Capital

· Solvency II capital surplus2 £11.0 billion (2017: £12.2 billion), including £1.8 billion of distributions to investors.

· Solvency II cover ratio‡,2 187% (2017: 198%)

· Operating capital generation# £0.9 billion (HY17: £1.1 billion)

· IFRS net asset value per share 411 pence (2017: 423 pence)


Cash

· Cash remittances‡,# £1,493 million (HY17: £1,170 million)

· UK Insurance special remittance £500 million. Cumulative special remittances from UK Insurance since 2016 totalled £1.25 billion, ahead of £1 billion target.

· Holding company liquidity £1.43 billion (February 2018: £2.0 billion)

https://www.investegate.co.uk/aviva-plc ... 00065538W/

Part 2 - https://www.investegate.co.uk/aviva-plc ... 00275539W/

Part 3 - https://www.investegate.co.uk/aviva-plc ... 00325540W/

Including this;

Subsequent to 30 June 2018, the directors declared an interim dividend for 2018 of 9.25 pence per ordinary share (HY17: 8.40 pence), amounting to £366 million (HY17: £337 million) in total based on shares in issue as at 31 July 2018. The dividend will be paid on 24 September 2018 and will be accounted for as an appropriation of retained earnings in the year ending 31 December 2018.

Part 4 - https://www.investegate.co.uk/aviva-plc ... 00405541W/

Including this;

2018 financial year calendar


2018 interim dividend ex-dividend date - 16 August 2018


2018 interim dividend record date - 17 August 2018


Payment date1 = 24 September 2018

[Arborbridge]

Aviva is trying hard to get back into our good books. With five years of rising dividends, this year will see the total rise above that of six years ago for the first time - if my notes are correct.

A long struggle towards the light for AV. in my HYP, including periods when I thought I might sell. The XIRR is now still under 5% pa, but that's better than a kick in the Carillions.

Arb.

[daveh]

Aviva is trying hard to get back into our good books. With five years of rising dividends, this year will see the total rise above that of six years ago for the first time - if my notes are correct.

A long struggle towards the light for AV. in my HYP, including periods when I thought I might sell. The XIRR is now still under 5% pa, but that's better than a kick in the Carillions.

Arb.

Looks like it from my records. I hold from the demutualisation of Norwich Union so the holding predates my HYP and have bought on occasion afterwards, last purchase was 2011 except the demutualisation shares which were set to reinvest dividends. My records show a steady increase in money received in dividends up to 2011 which would be due to increased holding size as well as a progressive dividend, increases continued in 2012 just due to dividend increases before almost halving in 2013. This year is the first year my AV. dividend payment will be more than the 2012 payment.

[Arborbridge]

Looks like it from my records. I hold from the demutualisation of Norwich Union so the holding predates my HYP and have bought on occasion afterwards, last purchase was 2011 except the demutualisation shares which were set to reinvest dividends. My records show a steady increase in money received in dividends up to 2011 which would be due to increased holding size as well as a progressive dividend, increases continued in 2012 just due to dividend increases before almost halving in 2013. This year is the first year my AV. dividend payment will be more than the 2012 payment.

That's what I see too - almost halving in 2013 then steady increases.

Arb.

[kiloran]

Including this;

2018 financial year calendar

2018 interim dividend ex-dividend date - 16 August 2018

2018 interim dividend record date - 17 August 2018

Payment date1 = 24 September 2018

Since the year dot, Aviva have paid dividends in May and November:
http://www.investorease.com/company.php ... re&epic=av.

Any idea why this payment is in September? I've (very quickly) scanned through the announcement and can't see any explanation.

--kiloran

[PinkDalek]

Since the year dot, Aviva have paid dividends in May and November:
http://www.investorease.com/company.php ... re&epic=av.

Any idea why this payment is in September? I've (very quickly) scanned through the announcement and can't see any explanation.

--kiloran

Well spotted.

I didn't see anything about the interim date change in the 4 RNSs nor in the later 2018 Interim Dividend Declaration https://www.investegate.co.uk/aviva-plc ... 00016009W/

However, this https://www.aviva.com/investors/dividends/ includes:

Policy

Aviva usually pays final dividends in May each year and now intend to pay interim dividends in September each year. Any dividend paid is declared by the directors at the interim and final results announcement and, in the case of a final dividend, approved by shareholders at the Annual General Meeting.

[Gengulphus]

Aviva is trying hard to get back into our good books. With five years of rising dividends, this year will see the total rise above that of six years ago for the first time - if my notes are correct.

On dividends paid in a calendar year, that's correct: dividends paid in 2012 were the 2011 final of 16p and the 2012 interim of 10p, for a total of 26p, and dividends paid in 2018 will be the 2017 final of 19p plus the 2018 interim of 9.25p, for a total of 28.25p. Those paid in 2017 were the 2016 final of 15.88p and the 2017 interim of 8.4p, for a total of 24.28p, so it didn't get above the 2012 total then.

On dividends paid for a company financial year (which in the case of Aviva is the same as a calendar year), it needs to be slightly modified from "this year will see" to "this year has seen" - the declaration of the 2017 final in March and payment of it in May brought the total for 2017 to 27.4p, exceeding the total for 2011 of 26p, while the total for 2012 was 19p. Not of any great importance IMHO - I'm just saying that depending on how they do their dividend totals, some HYPers might have already celebrated the complete recovery from the cut a few months back!

The previous record of 33p for 2008 and 2007, or of 34.09p paid in 2008, is still a way off, let alone also recovering enough to compensate for a decade of inflation as well - even at the generally-low inflation rates we've had in that decade, it compounds up to a fair amount more... But as you say, Aviva is trying hard.

We've just got to hope that it doesn't try too hard!

Gengulphus

[Gengulphus]

Since the year dot, Aviva have paid dividends in May and November:
http://www.investorease.com/company.php ... re&epic=av.

Any idea why this payment is in September? I've (very quickly) scanned through the announcement and can't see any explanation.

It's only an idea, not hard fact, but generally speaking there doesn't need to be as big a delay from the halfway point of a company financial year to payment of its interim dividend as there is from the end of its financial year to payment of its final dividend. That's because final results need to be audited and final dividends need to be approved by shareholders at its AGM, whereas interim results don't need to be audited (and generally aren't) and don't need shareholder approval, just to be declared by the directors.

Aviva had an ~4.5 month delay on both dividends, presumably in order to have a regular every-6-months dividend payment schedule. So my guess is that big shareholders have been saying to Aviva "Come on, there's no need to hang on to our interim dividends for about 4.5 months when you could easily pay them in about 3" and have finally persuaded the directors to make the change, sacrificing that regular schedule for the sake of getting their money sooner.

Gengulphus

[idpickering]

Further RNS regarding the dividend here, reiterating the payment date of 24 Sep 18.

https://www.investegate.co.uk/aviva-plc ... 00016009W/

Ian.

[absolutezero]

Thanks, as always Ian, for scouring the RNSs and updating us.

[monabri]

I just altered the dates and thought..oh well, I'll get the dividend sooner this year! (I thought I'd made a mistake in recording the Aviva XD dates).


(Data from "Dividenddata")

Moderator Message:
Image removed as did not conform to TLF's rules:-

All embedded images (including data and graphs) in posts must:-
Include an additional link (URL) to a web page where the original may be viewed in context, or (where the image is hosted on either a domain owned or controlled by the poster, or a hosting site account e.g. Imgur, Picasa, Dropbox, OneDrive, Google Drive) be followed by a statement that the poster owns (or is legally permitted to post) the content of the image. If this is later to be found to be incorrect, appropriate action will be taken by administrators. Images which do not comply with these requirements may be removed without warning.

Please be aware that in future posts "may" be deleted without warning. Raptor.

p.s. Maybe this is what Arb was thinking of? see

viewtopic.php?f=27&t=12986

[idpickering]

Thanks, as always Ian, for scouring the RNSs and updating us.

Equally, as always you are welcome. I was toying with topping up my Aviva holdings, and may well do so soon. I have more faith in the firm now as a HYP share.

Ian.

[Arborbridge]

I was wondering if anyone might topup - getting in before the xd would be nice*.

Based on "backing one's winners" one can hardly justify it, since AV. has hardly been a winner, though is does seem to be on the up. On the other hand, are my apparent "winners" about to become losers!!

So often, I look back and see opportunites which passed me by, such as investing in HYP shares which have been "slumped".

* I did, however, topup Av. in March.

Arb.

[idpickering]

I was wondering if anyone might topup - getting in before the xd would be nice*.

Based on "backing one's winners" one can hardly justify it, since AV. has hardly been a winner, though is does seem to be on the up. On the other hand, are my apparent "winners" about to become losers!!

So often, I look back and see opportunites which passed me by, such as investing in HYP shares which have been "slumped".

* I did, however, topup Av. in March.

Arb.

Sadly Arb, my regular dollop doesn’t get invested until 22nd Aug, so I miss the ex div I date for AV., but I’m not going to sell anything to free up cash, so not to worry. Hey ho...

Ian.

[monabri]

I just altered the dates and thought..oh well, I'll get the dividend sooner this year! (I thought I'd made a mistake in recording the Aviva XD dates).


(Data from "Dividenddata")

Moderator Message:
Image removed as did not conform to TLF's rules:-

All embedded images (including data and graphs) in posts must:-
Include an additional link (URL) to a web page where the original may be viewed in context, or (where the image is hosted on either a domain owned or controlled by the poster, or a hosting site account e.g. Imgur, Picasa, Dropbox, OneDrive, Google Drive) be followed by a statement that the poster owns (or is legally permitted to post) the content of the image. If this is later to be found to be incorrect, appropriate action will be taken by administrators. Images which do not comply with these requirements may be removed without warning.

Please be aware that in future posts "may" be deleted without warning. Raptor.

p.s. Maybe this is what Arb was thinking of? see

viewtopic.php?f=27&t=12986

Here's the link

Moderator Message:
Have modified the link as it did not take me to the AV page. The following seems to work? Raptor.

link to dividenddate