Bullish Blanc fights off Aviva takeover chatter as she announces share buyback and dividend hike

The boss of Aviva has shrugged off talk that the insurance group is now a takeover target as foreign predators circle British companies.

Announcing a share buyback and a higher dividend on the back of rising profits, chief executive Amanda Blanc hailed a ‘significant improvement’ since she took over three years ago.

And with takeover speculation swirling, she said: ‘The best defence of any organisation is to have a strong performance. 

And that is what you have seen from Aviva. So am I worried about it? No, I am not. Our prospects have never been better.’

Profits boost: Aviva boss Amanda Blanc hailed a ‘significant improvement’ since she took over three years ago

 Her comments come amid a frenzy of takeover activity with haulier Wincanton and telecoms testing group Spirent set to fall into US hands, while Currys and Direct Line are also attracting attention from overseas.

Fund managers at JO Hambro Capital Management, a top ten investor in Currys, this week attacked the low-ball approaches by international predators.

Clive Beagles and James Lowen, senior managers at the fund, said the interest in Currys ‘clearly shows the absurdity of UK stock-market valuations’.

Richard Bernstein, boss of activist investor Crystal Amber, has also raised alarm bells, saying US buyers in particular ‘understand that they’re acquiring bargains’.

Aviva is said to be in the sights of Italian insurer Generali. Blanc, who became Aviva’s first female chief in 2020 and saw her pay rise from £5.4million to £6.6million last year, described the speculation as ‘largely market chatter’.

It came as Aviva outlined plans to hand £300million back to investors through a share buyback and has improved its dividend after a jump in profits. 

The FTSE 100 firm told shareholders group operating profits rose 9 per cent to £1.47billion in 2023 compared with the previous year.

The increase was aided by strong rises in its general insurance, health and retirement divisions.

General insurance premiums increased by 16 per cent to £6.64billion for the year, with a 24 per cent increase in personal lines premiums.

The protection and health business saw sales were up by 16 per cent amid an improved uptake in health insurance.

Retirement sales soared by 14 per cent to £7.1billion, which was driven by increased bulk purchase annuity transactions.

As a result of the improved financial performance, Aviva announced a share buyback programme to purchase £300million in shares from investors.

It also confirmed a total dividend per share of 33.4p for the year. The firm said it plans to reach operating profits of £2billion by 2026.

Blanc said: ‘Sales are up, costs are down, and operating profit is 9 per cent higher.

‘Our position as the UK’s leading diversified insurer, with major businesses in Canada and Ireland, is clearly delivering.’

Shares rose 1.6 per cent, or 7.3p, to 462,2p, valuing Aviva at £12.7billion.

This post first appeared on Dailymail.co.uk